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Giggle Inc issued a 7%,3-year bonds with a face value of $200,000 on Oct 1st,2024....

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Accounting

Giggle Inc issued a 7%,3-year bonds with a face value of $200,000 on Oct 1st,2024. The market rate was 5%. Interest is paid annually starting on Oct 1,2025. Any premium or discount is amortized using the effective interest method. Bond issue cost totaled $3,000.
Calculate the selling price of the bond (3 points)
Fill in the below amortization schedule for this bond, including bond issue cost amortization. (round all figures in the table to nearest whole dollar)(3 points)
Date
Cash
Paid
Interest Expense
Amortization
Carry Value
Bond Issue Cost
10/1/24
10/1/25
10/1/26
10/1/27
Provide journal entries for the following dates (3 points each):
10/1/24
12/31/24(Financial Statement date)
10/1/25: Interest payment journal entry. Assume no reversing entries.
10/1/25: The company eliminated the debt early on this date for 104.

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