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Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually...

Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of 5,030,00

Prepare the January 1, 2013, journal entry to record the issuance.

For each semiannual period, compute

the cash payment,

the straight-line premium or discount amortization

the bond interest expense

Cash proceeds=

Cash proceeds=

Bonds interest expense= cash interest paid + bond discount

Bonds interest expense=

Bonds interest expense=

Bonds interest expense=

Unamortized premium or discount, and bond carrying value

Determine the total bond interest expense to be recognized over the bonds’ life.

Prepare an amortization table using the straight-line method.

Prepare the journal entries to record all the interest payments.

Record the journal entry to record the payback of the bond at maturity

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