On January 1, 2024, Wolf Incorporated issued 12% bonds dated January 1, 2024, with a...
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On January 1, 2024, Wolf Incorporated issued 12% bonds dated January 1, 2024, with a face amount of $160,000. The bonds sold for $187,455 and mature in 20 years. The effective interest rate for these bonds was 10%. Interest is paid semiannually on June 30 and December 31 . Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization. Required: 1. Construct a bond amortization table for this problem to indicate the interest expense amount and discount amortization for 2024 and 2025. (Round to the nearest dollar.) ( 5 points) 2. Prenare the necessary journal entries for 2024 . (9 points)
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