ATD Corporation starts its business in January 1, 2010 inBuford, GA to produce and sell mobile homes. On January 1, 2010,ATD Corporation issued $1,200,000 of ten-year, 7% bonds at aneffective interest rate of 8% at a discount for 1,119,479.03.Interest on the bonds is payable annually on December 31. Thefiscal year of the company is the calendar year. 1. Based on theabove information, prepare the initial journal entry by ATDCorporation to record the issuance of bonds on January 1, 2010.Please show supporting computations in Excel for your journalentry. 2. Suppose ATD Corporation uses straight-line method forbond amortization, prepare a bond amortization table on theworksheet for ATD. Print the amortization table in good format. 3.Based on the table in (2), prepare journal necessary journalentry(ies) for ATD for the following dates: a. 12/31/2010 b.1/1/2011 c. 12/31/2014 d. 12/31/2019 e. 1/1/2020 when ATD paid offits bonds payable. 4. Based on the table in (2), suppose ATDretires half of its bonds on October 1, 2015 at 102, preparenecessary journal entry(ies) for ATD for the following dates: a.9/30/2015 b. 10/1/2015 c. 12/31/2019 d. 1/1/2020 when ATD paid offits bonds payable. 5. Suppose ATD Corporation useseffective-interest method for bond amortization, prepare a bondamortization table on the worksheet for ATD. Print the amortizationtable in goof format. 6. Based on the table in (5), prepare journalnecessary journal entry(ies) for ATD for the following dates: a.12/31/2010 b. 1/1/2011 c. 12/31/2014 d. 12/31/2019 e. 1/1/2020 whenATD paid off its bonds payable. 7. Based on the table in (5),suppose ATD retires half of its bonds on October 1, 2015 at 102,prepare necessary journal entry(ies) for ATD for the followingdates: a. 9/30/2015 b. 10/1/2015 c. 12/31/2019 d. 1/1/2020 when ATDpaid off its bonds payable. Required: Turn in printouts from Steps1-7 in good format. Save the results as Exercise9.xls.
