Kelly issues $315,000 of 4%, 15 year bonds dated january 1, 2009, that pay interest semiannually on june 30 and december 31. They are issued at 253,263, and their market rate is 6% at the issue date.
1. prepare the january 1, 2009, journal entry to record the bond's issueance
2. determine the total bond interest expense to be recognized over the bonds life.
3. prepare an effective interest amortization table for the bond's first two years.
4. prepare journal entries to record the first two payments.