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Mitchell Inc. issued 200 of its 6%,$1,000 bonds on January 1 of Year 1. The...

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Accounting

Mitchell Inc. issued 200 of its 6%,$1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each July 1 and January 1 and were issued to
yield 7%. The bonds mature in three years on December 31, and the company uses the effective interest method to amortize bond discounts or premiums.
Required
a. Determine the selling price of the bonds.
b. Prepare an amortization schedule for the first year of the bond term.
c. Prepare journal entries on the following dates.
January 1 of Year 1, bond issuance.
July 1 of Year 1, interest payment.
December 31 of Year 1, interest accrual.
January 1 of Year 2, interest payment. (No reversing entries made.)
Note Round amount to the nearest dollar.
a Collino nrire nf hnnde
Note: Round amounts in Schedule to the nearest whole dollar.
Note: Do not use negative signs.
Note: Round your answers to the nearest whole dollar.
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