[niccole]

I would like to make sure that I've completed the bond schedule, etc. correctly with the information that was given below. I also attached it for better viewing.

Bond interest and discount amortization.
Logan Corporation issued $800,000 of 8% bonds on October 1, 2007, due on October 1, 2012. The interest is to be paid twice a year on April 1 and October 1.
The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31.
Instructions
(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (Round all answers to the nearest dollar.) Use the effective-interest method.
Date Credit Debit Credit Carrying Amount of Bonds
Cash Interest Expense Bond Discount

1-Oct-07 $738,224


1-Apr-08
….continue schedule (use Excel)

(b) Prepare the journal entries for the following:
1. October 1, 2007 bond issue
2. Adjusting entry for December 31, 2007
3. April 1, 2008 entry
4. October 1, 2008 entry
5. Adjusting entry from December 31, 2008

(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.

A B C D E
4% * $800,000 5% * Carrying Value B-A D-C $800,000 - D
Interest Period $61,776 $738,224
April 1 2001 32000 36911 4911 56865 743135
October 1 2001 32000 37157 5157 51708 748292
April 1 2002 32000 37415 5415 46293 753707

Cash 738224
Bonds Payable 738224

Assets Liabilities Shareholders Equity (Class.)
-738224 738224

Interest Expense 36911
Interest Payable 32000
Bonds Payable 4911

Assets Liabilities Shareholders Equity (Class.)
32000 -36911
4911

Interest Payable 3200
Cash 3200

Assets Liabilities Shareholders Equity (Class.)
-32000 -32000