Premiere Autoparts Inc. issued $130,000 of 8%,10-year bonds at a price of 88 on January...
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Premiere Autoparts Inc. issued $130,000 of 8%,10-year bonds at a price of 88 on January 31,2020 . The market interest rate at the date of issuance was 11%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Premiere's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31 , 2020. Explanations are not required. Start by recording the issuance of bonds on January 31,2020. Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31,2020
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