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  3. on jan 1, 2016. road corporation, a us gaap report

On jan 1, 2016. Road Corporation, a US GAAP reporter, issued $1,100,000 par value, 4%,...

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Accounting

On jan 1, 2016. Road Corporation, a US GAAP reporter, issued $1,100,000 par value, 4%, 5-year bonds. Interest is payable semiannually each Jan 1 and July 1 with the first interest payment due at end of period on July 1 2016. The market rate of interest on the date of the bond issue was 6%. The company's fiscal year ends on dec 31. a) Determine issue price of debt. b) Prepare amortization table for bond issue through Jan 1,2019 assuming Road Corpoation uses the effective interest rate method of amortization. c) Prepare Journal entry Record issuance of bonds payable. Record first semiannual interest payment. Record payment of the bonds at maturity.

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