Question - On Jan 1 2003, Apple issued $5 million face amount of 6% bonds. Bonds are dated Jan 1 and mature in 5 yrs with semiannual interest payments. The market rate of interest at the time off issue was 7%, and the bonds priced at $4,792,085. Use the effective-interest method of amortization.
A) Prepare a 5 yr amortization table for the bonds
B) Prepare 2003's entries for these bonds (the initial bond issuance, the June 30th interest payment and the Dec 31 interest payment)
C) Show the appropriate balance sheet presentation for the bonds, as of Dec 31, 2005.