E9-26A (L earn i ng Obj ec tiv e 2: I ss u e b onds p aya b le ( d i sco u n t) , record i n t eres

E9-26A (Learning Objective 2: Issue bonds payable (discount), record interest payments and the related bond amortization using the effective-interest method) Team Sports Ltd. is authorized to issue $5,000,000 of 5%, 10-year bonds payable. On December 31, 2012, when the market interest rate is 6%, the company issues $4,000,000 of the bonds and receives cash of $3,702,450. Team Sports Ltd. amortizes bond discount by the effective-interest method. The semiannual interest dates are June 30 and December 31.

▶ Requirements

1.    Prepare a bond amortization table for the first four semiannual interest periods.

2. Record issuance of the bonds payable on December 31, 2012; the first semiannual interest payment on June 30, 2013; and the second payment on December 31, 2013.


Looking for a Similar Assignment? Let us take care of your accounting classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15