Calculate journal entry for issuance of bond

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On January 01, 2020, Kristopher Corporation issued $ 100,000 of 8%, 10 Years Bonds for $ 87,538. The Bonds were priced to generate an effective yield of 10% to Investors are dated On January 01, 2020 and semiannual interests on June 30 and December 31.

Question 1: You are required to calculate following:

a. Bond Amortization Schedule on the basis of Effective Interest method.

b. Cost of Borrowing

c. Journal Entry for Issuance of Bond

d. Journal Entry for coupon Payment just for FIRST YEAR

e. Journal Entry for Amortization just for FIRST YEAR

f. Journal Entry at the time of Maturity

Reference no: EM132503271

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