The Sis Company issued $600,000 of 12% bonds on January 1, 2008. The bonds were sold for $664,190 and they were expected to yield 10% interest compounded semiannually. The actual interest dates are June 30 and December 31. The maturity date of the bonds is December 31, 2012.
- Please prepare the journal entry to record the issuance of the bonds.
- In using the effective-interest method, prepare the journal entries to record the first two interest payments.
- Ice which is caused by the stated effective rate.
- Both problems in one Excel document.