Chapter 14, Problem 14.8E

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest.

The issue price of the debt.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest method of amortization.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal entries to record the bond issue, the first interest entry, and payment of bonds at maturity.