Refer to the bond details in Problem 10-4A.
Required
1. Compute the total bond interest expense over the bonds’ life.
2. Prepare an effective interest amortization table like the one in Exhibit 10B.2 for the bonds’ life.
3. Prepare the journal entries to record the first two interest payments.
4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2013. Compare your answer with the amount shown on the amortization table as the balance for that date (from part 2) and explain your findings.
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