Question - On January 1, 2011, Block Company issued $100,000 of 10%, 5 year bonds, with semiannual interest payments on July 1 and January 1. The bonds were issued at $92,639, yielding an effective interest rate of %12. Block Company uses an effective interest method of amortization.
A. Make an amortization schedule for the issuance of the bond and for the next 2 years.
B. Make the Journal entry for the issuance of the bonds, January 1, 2011
C. Make the Journal entry for the July 1, 2011, interest payment.
D. Make the year-end adjusting entry for December 31, 2011.