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Question 2: Banjo Co. purchases a bond they classity as HTM. ...

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Accounting

Question 2:
Banjo Co. purchases a bond they classity as HTM.
The bond has an original face value of $100,000; a 8% coupon rate, and 4 years to maturity.
The market rate of interest currently is 13% which makes Banjo Co. have to pay $85,127.64 for the bond today.
Part 1: Make the necessary journal entry for the purchase of the bond:
\table[[Account,]]
Part 2: Build a full amortization schedule for the full life of the bond:
Cash Received Interest Revenue Amortized Value Carrying Value
Purchase
Year 1
Year 2
Year 3
Year 4
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