On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest semi-annually on April 30 and October 31. The bonds were sold for $5,166,715 to yield 3.6%. Augusta’s year-end is December 31. Instructions: a) Prepare a bond amortization table for the bond. This is easier if you use excel. b) Journalize the following entries. Use the journal entry format that we used in class on March 15. Issue of the bonds October 31, Year 1, interest payment December 31, Year 1 interest accrual April 30, Year 2, interest payment

On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest semi-annually on April 30 and October 31. The bonds were sold for $5,166,715 to yield 3.6%. Augusta’s year-end is December 31. Instructions: a) Prepare a bond amortization table for the bond. This is easier if you use excel. b) Journalize the following entries. Use the journal entry format that we used in class on March 15. Issue of the bonds October 31, Year 1, interest payment December 31, Year 1 interest accrual April 30, Year 2, interest payment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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