bonds payable issue at premiun interest payment redemption 496277


Following is an amortization table for an issue of three-year bonds on January 1, 2011:
		Effective	Contractual		Carrying
	Carrying Value at	Interest	Interest	Amortization	Value End
Year	Beginning of Year	Incurred	to be Paid	of Principal	Of Year
2011	$105,154	$8,412	$10,000	$1,588	$103,566
2012	$103,566	$8,285	$10,000	$1,715	$101,851
2013	$101,851	$8,148	$10,000	$1,852	$100,000
Total		$24,845	$30,000	$5,155

Required:				Place you answer in the shaded boxes below with any computations to the right
A. How much were the bonds sold for?
B. What is the stated (contractual) rate of interest?
C. What is the effective rate of interest?
D. Record the entries necessary over the life of the bonds for the issuance, retirement and yearly interest accrual.
You do not need to record the payment of interest.
Date	Account Title	Debit	Credit
1/1/11	Cash			The accounts for the first entry have been entered
	Premium on Bonds Payable			enter the amounts and record the remaining entries.
	Bonds Payable			Start each entry opposite the date

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12/31/13



12/31/13