1. On January 1, 2016, Flight International, Incorporated, issued $300,000 face value, 5-year bonds with a stated rate of 8% at an effective rate of 10% to yield $277,255. Interest is paid annually on December 31. Flight International, Incorporated, uses the effective-interest method of amortization Prepare entries for the following transactions: a Issuance of the bonds on January 1, 2016. Payment of interest and amortization of discount or premium on December 31, 2016. b 2. During its first year of operations Keene Limited had sales of $76,500. The company offers a 2- year limited warranty on all sales and expects that warranty costs for the first year will average 0.5% of sales with an additional 1.5% in the second year. During the current year the company spent $1,200 on warranty repairs. Required: 1. Prepare all journal entries related to the warranty for the current year. 2. How will the warranty liability be reported on the company's year-end balance sheet