#1. On December 31, 2021, Clark Corporation issued $2,000,000, 6%, 5-year bonds for $2,086,540. The bonds were sold to yield an effective-interest rate of 5%. Interest is paid annually on December 31. The company uses the effective-interest method of amortization. Instructions (a) Prepare a bond premium amortization schedule which shows the amortization of premium for the first two interest payment dates. (Round to the nearest dollar.) (b) Prepare the journal entries that Clark Corporation would make on December 31, 2021, and December 31, 2022, and December 31, 2023 related to the bond issue.