Prepare an Amortization Schedule for the 1st 2 Years (Effective

question 81

Essay

Prepare an amortization schedule for the 1st 2 years (effective method) using the following data:
1. On January 1, 2010, ABC Co. issued $2,000,000, 5%, 10 year bonds, interest payable on June 30th and December 31st to yield 6%. Use the following format and round to nearest dollar (may have small rounding error). The bonds were issued for $1,851,234.
2. Show how this bond would be reported on the balance sheet at 12/31/11.

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