Exercise 1

 Intel Inc. is the pioneer in the manufacture of microprocessor for computers. The company’s fiscal year runs from April 1 to March 31. On 4/1/2013, Intel Issued $5,000,000 of 11% Bonds due in 10 years. The interest is payable annually on April 1. The market rate of interest on that date for bonds of similar risk is 10%

Prepare the journal entry for the issuance of the bonds and on the first interest payment date.
Use the attached spreadsheet to prepare an amortization schedule for the bonds.