1)

2)

Clem Company issued $920,000, 10-year, 6 percent bonds on January 1, 2018. The bonds sold for $850,000. Interest is payable annually on Decem on January 1, 2018, and (b) the payment of interest on December 31, 2018. The market interest rate on the bonds is 7 percent (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) ber 31. Using effective-interest amortization, prepare journal entries to record (a) the bond issuance