On January 1, 2023, Quinton Corporation issued $600,000 of 7% bonds that are due in 10 years. The bonds were issued for $559,229 and pay interest each July 1 and January 1. The company uses the effective interest method. Assume an effective rate of 8%.

(a) Prepare the company’s journal entry for the January 1 issuance. 

(b) Prepare the company’s journal entry for the July 1 interest payment. 

(c) Prepare the company’s December 31 adjusting entry.

(d) Assume that the effective interest of 8% was not given in the data. Prove the effective interest rate of 8% using (1) a financial calculator or (2) Excel function Rate.

(e) Prepare the first three payments of an effective interest amortization table for the bonds. Round to the nearest cent for the amortization table.