A company issued 10%,five-year bonds with a par value of $2,000,000,on January 1,2013.Interest is to be paid semiannually each June 30 and December 31.The bonds were sold at $2,162,290 to yield the buyers an 8% annual return.The company uses the effective interest method of amortization.
(1) Prepare an amortization table for the first two semiannual payment periods using the format shown below.
(2) Prepare the general journal entry to record the first semiannual interest payment.
Definitions:
Zygote
The earliest developmental stage of an embryo, formed when a sperm cell fertilizes an egg cell, which then begins to divide and grow.
Germinal Period
The initial two weeks of prenatal development following conception, characterized by rapid cell division and the beginning of cell differentiation.
Implantation
The process by which a fertilized egg attaches to the lining of the uterus to begin pregnancy.
Uterine Wall
The muscular layer lining the uterus, which thickens during the menstrual cycle and pregnancy.
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