Assume the effective interest method in accounting for

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On 1-1-2014 Avion, Inc. Sold Bonds with these particulars:                                      

Face amt. of Bonds                                $375,000                                  

Matures on 1-1-2024, 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: EM13581479

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