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On fune 1, 2024, Everly Bottie Company sold $3,000,000 in long term bonds for $2,631,317....

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Accounting

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On fune 1, 2024, Everly Bottie Company sold $3,000,000 in long term bonds for $2,631,317. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%, The bonds pay interest annusly on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and dscount amortization at each May 31 . include only the first four years. Make sure all colurns and rows are properly labeled. (Round to the nearest dollar.] (b) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2026. (Round to the nearest dollar.)

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