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Prepare the journal entries to record the interest payments

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Question - On January 1,2010, the Calvert Company issues 12%, $100,000 face value bonds for $103,545.91, a price to yield 10%. The bonds mature on January 1, 2012. Interest paid semi-annually on June 30 and Dec. 31.

a. Prepare a bond interest expense and premium amortization schedule using the straight - line method.

b. Prepare a bond interest expense and premium amortization schedule using effective interest method.

c. Prepare the journal entries to record the interest payments on June 30, 2010 and December 31, 2010, using both methods.

Reference no: EM132091373

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