a company decides to issue a $ 1,500,000 of 10.5% 10-year bonds. These bonds were issued on January 1, 2005, and pay interest annually on each January 1. The bonds yield 10%. Palmero paid $50,000 in bond issue cost related to the bond sale.
A) Prepare the journal entry to record the issuance of the bonds and the related bond issue cost incurred on January 1, 2005
B) Prepare a bond amortization schedule up to and including January 1, 2009, using effective interest method.