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Effective interest method in accounting for bonds

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Reference no: EM132203722

On 1-1-2018 Avion, Inc. Sold Bonds with these particulars:

Face amt. of Bonds 375,000

Matures on 1-1-2028, in 10 yrs.

Stated annual rate of int. 8.75%

Effective annual rate of interest 10.00%

Int. is paid every six months; 6-30, 12-31

Req. 1. Assume the effective Interest Method in accounting for these Bonds, build a 10 year amortization table

Req. 2. Give General Journal entries to record the sale of the bonds, and the 1st 4 interest payments

Reference no: EM132203722

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