On January 1,2014 Oaken Furniture Co. issued $700,000 of 10% bonds and received cash

On January 1,2014 Oaken Furniture Co. issued $700,000 of 10% bonds and received cash

totaling $795,141. Interest is payable semiannually on
January 1 and July 1. The maturity date on these bonds is January 1,
2024. The firm uses the effective-interest method of amortizing
discounts and premiums. The bonds were sold to yield an effective rate
of 8%. Oaken Furniture Co. is a calendar-year corporation.
a)
Prepare an amortization table through the first two interest periods
(July 1 2014 & January 1, 2015) using the effective-interest method.
b) Prepare journal entries to record bond-related transactions as of
the folowing dates January 1,2014, July 1 2014, Dec 31,2014

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