Response to the following problem:
Calculate the proceeds of the bond issue.
Prepare a bond amortization table (effective interest method),
Prepare all journal entries for the issuance of the bonds, the interest payments, early retirement, and the payoff of the bonds at maturity. ALL calculations must be shown in excel.
(a) December 21, 2007, Bonder issued $8,000,000.00, 7% bonds to yield 8%. Bonder incurred 120,000 of bond issue costs. Interest is payable Semi-annually on Dec 31, and June 30th. The bonds mature on December 21, 2012.
(b) December 31, 2010 Bonder retired $2,000,000 of the bonds at 104 plus accrued interest. Bonder uses straight line amortization on the bond issue costs.