Questions:
On January 1, 2012, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $436,784.
Requirement 1:
What would the first three rows of an amortization table look like?
Requirement 2:
How would the bond issue be recoreded as a journal entry and what would the first two semi-annual interest payments be?