On June 1, 2019, Everly Bottle Company sold $3,000,000 in long-term bonds The bonds will mature in 5 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds
are to be accounted for under the effective-interest method.
Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization
1 at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled
2 Record the issuance of the bonds on June 1, 2019
Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on
3 December 31, 2021. (Round to the nearest dollar.)