Chapter 14, Problem 14.6E

Bond Issue, Interest Payments, Effective Interest Rate Method, Amortization Table.

On January 1, 2018, the Landon Capital Partners issued $600,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period of July 1 2018. The market rate of interest on the dale of the bond issue was 4%.

Required

1. a. Determine the issue price of the debt.
2. b. Prepare the amortization table for the bond issue assuming that Landon uses the effective interest rate method of amortization.
3. c. Prepare the journal entries lo record the bond issue, the first interest entity, and payment of