Prepare the journal entry to record the issuance by abc plc

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ABC Plc. issued 6% bonds on January 1, 2012, with a principal amount of $600,000, the market yield for bonds similar risk and maturity was 8%. THE BONDS MATURE December 31, 2015 (4 years) interest is paid semiannually on June 30 and December 31.

Problem a) Determine the price of the bonds on January 1, 2012.

Problem b) Prepare the journal entry to record their issuance by ABC Plc. On January 1, 2012.

Problem c) Prepare a amortization schedule that determines interest at the effective rate each period.

Problem d) Prepare journal entries to record interest on June 30, 2012 and December 31, 2012.

Reference no: EM132818356

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