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On October 1, 2020, Google Corporation issues $4,000,000 of 10% 10-year bonds dated October 1,...

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Accounting

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On October 1, 2020, Google Corporation issues $4,000,000 of 10% 10-year bonds dated October 1, 2020, at 114 when the market rate of interest was 8%. Google Inc. uses the effective-interest method of amortization. Interest is paid each October 1 and April 1. - Round answers to the nearest dollar Required: 1. Prepare an effective interest method amortization table for the first four semiannual interest periods. 2. Record issuance of the bonds on October 1, 2020, the interest and amortization on December 31, 2020, om April 1, 2021 and on October 1, 2021. 3. Show how Google Inc. would report the bonds on its balance sheet at December 31, 2020

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