Response to the following problem:
On 1-1-2013 Avion, Inc. Sold Bonds with these particulars:
Face amt. of Bonds 450,000
Matures on 1-1-2023, in 10 yrs.
Stated annual rate ofint. 7.25%
Effective annual rate of interest 6.00%
Int. is paid every six months; 6-30, 12-31
Req. 1, Assume the effective Interest Method in accounting for these Bonds, build a 10 year amortization table.
Req. 2, Give General Journal entries to record the sale of the bonds, and the 1st 4 interest payments.