WS Inc. issued $100,000 of 10% bonds on January 1, 2016. The bonds are due December...
- WS Inc. issued $100,000 of 10% bonds on January 1, 2016. The bonds are due December 31, 2017 (2 years) and were issued to yield 10% (market interest rate is 12%). Interest will be paid annually.
- Calculate the price of the bonds.
- Using the effective interest rate of amortization, prepare an amortization chart for WS Inc. showing both 2016 and 2017 calculations.
- Show all applicable journal entries:
- Issuance of bonds
- 2016 and 2017 interest payments
- Retirement of bonds
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