Question - BU's companies bookkeeper retired before completing the amortization table for $35,000 par value bonds the company issued on March 1, 2010 using the information in the table below answer the questions that follow incomplete that amortization table. Please show your calculations, where appropriate.
|
Date
|
Interest Expense
|
Coupon Payment
|
Discount Amortization
|
Discount Balance
|
Bonds Payable Balance
|
|
3/1/10
|
|
|
|
$1,351
|
$33,649
|
|
9/1/10
|
$1,682
|
$1,575
|
$107
|
$1,244
|
$33,756
|
|
3/1/11
|
$1,688
|
$1,575
|
$113
|
$1,131
|
$33,869
|
|
9/1/11
|
$1,693
|
$1,575
|
$118
|
$1,013
|
$33,987
|
|
3/1/12
|
$1,699
|
$1,575
|
$124
|
$888
|
$34,112
|
|
9/1/12
|
$1,706
|
$1,575
|
$131
|
$758
|
$34,242
|
|
3/1/13
|
$1,712
|
$1,575
|
$137
|
$621
|
$34,379
|
|
9/1/13
|
$
|
|
|
|
|
|
3/1/14
|
$
|
|
|
|
|
What is the annual market rate of interest?
What is the annual coupon rate of interest?
Provide the journal entry for the issuance of the bonds on March 1, 2010.
Provide the journal entry to record the first coupon payment on September 1, 2010.
Provide the journal entry that will be made when the bonds mature on March 1, 2014.