A company issued 10%,10-year bonds with a par value of $1,000,000 on January 1,at a selling price of $885,295 when the annual market interest rate was 12%.The company uses the effective interest amortization method.Interest is paid semiannually each June 30 and December 31.
(1)Prepare an amortization table for the first two payment periods using the format shown below:
(2)Prepare the journal entry to record the first semiannual interest payment.
Definitions:
Insects
A class of arthropods characterized by a three-part body (head, thorax, abdomen), three pairs of jointed legs, compound eyes, and one pair of antennae.
Kidney Dialysis
is a medical treatment for removing waste and excess water from the blood, acting as an artificial replacement for lost kidney function.
Solutes
Substances dissolved in a solvent to form a solution; they can be gases, liquids, or solids.
Diffusion
The movement of particles from an area of higher concentration to an area of lower concentration, leading to the equal distribution of the particles.
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