A partial bond amortization schedule for $2-million, 5-year bonds is presented below: 

a. Fill in the missing words or amounts for items [1] through [6]. 

b. What is the bonds’ face value? 

c. What is the bonds’ contractual interest rate? The market interest rate? 

d. Prepare the journal entries for the first two interest payments.

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Semi-Annual Interest Period Issue Date Apr. 30 Oct. 31 Interest [2] $40,000 40,000 Interest [3] $[4] 48,007 [1] Amortization $7,812 [5] Carrying Amount of Bonds $1,912,479 1,920,291 [6]