The Jan Larsen Corporation issued bonds with the following details:
Contractual interest rate
Market interest rate
January 1, 2017
Date of issuance
January 1, 2014
Interest payments due
Annually on January 1
Method of amortization
End of annual reporting period
(a) Complete the amortization schedule for these bonds which appears below.
(b) Prepare the journal entries to record:
(1) The issuance of the bonds on January 1, 2014.
(2) The adjusting entry(s) at December 31, 2014.
(3) The payment entry on January 1, 2015. (Assume reversing entries are not used.)