Effective-Interest Amortization of Bond Discount On January 1, 2001, Toll Corporation received $241,336 when it issued a 4-year bond with a par value of $250,000 and a stated interest rate of 5 percent. The current market rate for similarly rated bonds was 6 percent at the time of issue. Assuming the bond pays interest annually on December 31, and the effective-interest method is used in recording interest expense:

a. Prepare a bond interest and amortization table for the life of the bonds.

b. Give the journal entry recorded by Toll at the time the bonds were issued.

c. Give the journal entries recorded by Toll over the life of the bonds.

d. Give the balance sheet presentation of the bond liability at December 31, 2002.