On September 30, 2020, when the market interest rate is 6 percent, Jammer Ltd. issues $8,000,000 of 8 percent, 20-year bonds for $9,849,182. The bonds pay interest on March 31 and September 30.

Required

1. Prepare an amortization table for the first four semi-annual interest periods. Follow the format of Panel B in Exhibit 15–7 on page 835. Jammer Ltd. amortizes a bond premium by the effective-interest method.

2. Record the issuance of the bonds on September 30, 2020, the accrual of interest at December 31, 2020, and the semi-annual interest payment on March 31, 2021.

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Jammer Ltd. Amortization Table Interest Interest Expense Unamortized Payment (25% of Premium Premium Account Bond Carrying Semi-annual 5% of Preceding Bond Amortization Balance Amount Interest Period Maturity Values) Carrying Amount) (A-B) (D-C) (59.000,000 + D) Issue date