On January 1, 2019, a company acquired $2,000,000 face amount of bonds dated January 1, 2022. The bonds mature on December 31, 2023. The life of the bond is 5 years and 8% interest is payable annually on December 31. The cost of the bond is quoted at 90, a price which will yield a 12% effective rate per year.
Required: a. Prepare Amortisation table and journal entries until the bond reaches maturity.
