Response to the following problem:
1. Info
(a) On December 31 , 2004 , Renn issued $900,000 , 9% bonds to yield 10% Interest that is payable semiannually on December 31 and June 30. The bonds mature on December 31 , 2009.2.
(b) On June 30 , 2007 , Renn retired $270,000 of the bonds at 102 plus accrued interest .
Required :
1. Calculate the proceeds of the bond issue.
2. Prepare a Bond Amortization Table (use the effective interest method)
3. Prepare all journal entries for the issuance of the bonds , the interest payments , the early retirement and the payoff of the bonds at maturity. All Work (calculations) need to be shown (not hidden).
Journal Entries should be explained in word, tables in Excel.