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On January 1, 2015, Piper Co. issued ten-year bonds with a face value of $3,000,000...

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Accounting

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On January 1, 2015, Piper Co. issued ten-year bonds with a face value of $3,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Table values are: Present value of 1 for 10 periods at 10% 1386 Present value of 1 for 10 periods at 12% .322 Present value of 1 for 20 periods at 5% 377 Present value of 1 for 20 periods at 6% 312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470 a). Calculate the issue price of the bonds b). Prepare the journal entry for issuing bonds at January 1, 2015 c). Prepare the amortization table for 2015, assuming that amortization is recorded on interest payment dates using the effective interest method. Cash Paid Interest Expense Amortization Carrying Value Date 1/1/15 6/30/15 12/31/15

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