Relaxation Inc. is authorized to issue 5%, 10-year bonds payable. On Jan 1, 2014 when the market interest rate is 10%, the company issues $100,000.00 of the bonds. The bonds pay interest semi-annually.
How much cash did the company receive upon issuance of the bonds payable? (Round all numbers to the nearest whole dollar)
1.) Upon issuance of the bonds payable the company received $_____
2.) Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments. (Round all numbers to the nearest whole dollar)
3.) Journalize the issuance of the bonds on Jan 1,2014 and payment of the first semi annual interest amount and amortization of the bond on June 30, 2014. Explanations are not required.