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On July 31, 2013, Camelot Castle Resorts issues a $3,2500,000, 10 year, 8.5% Bond with...

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Accounting

On July 31, 2013, Camelot Castle Resorts issues a $3,2500,000, 10 year, 8.5% Bond with interest payable semiannually on January 31 and July 31 of each year. The market interest rate on the date of issuance is 5%. Camelot Castle Resorts uses the effective interest method to amortize bonds.

1. Calculate the issuance price of the bond using the appropriate present value tables attached.

2. Prepare the entry to account for the Bond Issuance on July 31, 2013

3. Complete the first three rows of the following Amortization Schedule

31-Jan-14

31-Jul-14

31-Jan-15

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