08 Jan Burrell Industries’s board of directors authorized
Burrell Industries’s board of directors authorized the issuance of $ 60,000,000 in 10- year, 9 percent bonds. The bonds are dated November 1, 2011, and interest is paid semiannually on May 1 and November 1. Burrell closes its books on June 30 each year. The bonds were issued on November 1, 2011, when the market rate of interest was 8 percent. Required: A. Make the amortization schedule for this bond issue. B. Prepare the journal entries for the issuance of the bonds and the first year of the bond’s life. C. Describe how the bonds are reported on Burrell’s income statement, balance sheet, and statement of cash flows for the year ended June 30, 2012.