XYZ Corporation issues $200000 of 4-year bonds payable dated 1/1/2011. The bo

XYZ Corporation issues $200000 of
4-year bonds payable dated 1/1/2011. The bonds have a stated rate of interest of 4% and will pay interest annually on 12/31 of each year. The bonds issue when
the market rate of interest is 6%. There are bond issuance costs of $1200.

Requirements:

1. Assume the Bonds sell on 1/1/2011. Prepare a Complete and in good form effective interest amortization
schedule for the bonds. Make certain to place the headings at the top of each column of your amortization schedule. Round to whole dollars throughout the
schedule.

2. Continuing the assumption in %u201CA%u201D that the bonds sold on 1/1/2011 prepare all of the 2011 Journal
Entries relative to the Bond.

3. Continue the assumption in %u201CA%u201D that the bonds sold on 1/1/2011 and further assume that the interest
is paid and up-to-date through 12/31/2012 and all appropriate journal entries have been made through that date.

On 1/1/2013 XYZ calls one-half of the bonds at an agreed upon 101. Prepare the Journal Entry to record this
redemption.

4. New assumption: Instead of the assumption used for %u201CA%u201D and %u201CB%u201D and %u201CC%u201D above
you should now assume the Bonds sell on 4/1/2011. Prepare the Journal Entry to record the issuance.