Villa Corporation issued $3 million of 7-year, 4% bonds dated January 1, 2024, for $2,661,118. The market interest rate when the bonds were issued was 6%. Interest is payable semi-annually on January 1 and July 1. Villa has a December 31 year end. 

a. Prepare an amortization schedule for the first three interest payments. 

b. Prepare the journal entry to record the first interest payment on July 1, 2024. 

c. Prepare the adjusting entry on December 31, 2024, to accrue the interest expense. 

d. Prepare the journal entry for the payment of interest on January 1, 2025.