Following is an amortization table for an issue of three-year bonds on January 1, 2011:EffectiveCont
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Following is an amortization table for an issue of three-year bonds on January 1, 2011:EffectiveContractualCarryingCarrying Value atInterestInterestAmortizationValue EndYearBeginning of YearIncurredto be Paidof PrincipalOf Year2011$105,154$8,412$10,000$1,588$103,5662012$103,566$8,285$10,000$1,715$101,8512013$101,851$8,148$10,000$1,852$100,000Total$24,845$30,000$5,155Required:Place you answer in the shaded boxes below with any computations to the rightA. How much were the bonds sold for?B. What is the stated (contractual) rate of interest?C. What is the effective rate of interest?D. Record the entries necessary over the life of the bonds for the issuance, retirement and yearly interest accrual.You do not need to record the payment of interest.DateAccount TitleDebitCredit1/1/11CashThe accounts for the first entry have been enteredPremium on Bonds Payableenter the amounts and record the remaining entries.Bonds PayableStart each entry opposite the date12/31/1112/31/1212/31/1312/31/13
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