Mazeltov Corporation issued $100,000 3-year, 10% stated rate bonds on January 1, 2004. The bonds pay interest annually and sold at a market rate of 12%.
a. Calculate the issue price of the bonds.
b. Prepare an amortization schedule for the bonds (use the table below): b.prepare an amortization schedule for the bonds. Payment date Carrying value, beginning. Cash interest Interest expense amortization Caring value, ending. 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/32/06
c. record the interest expense entry for the 6/30/05 interest payment: accounts debits credits