1. Your company issued 1,000, 4.0% bonds (face value of each bond is $1,000) at 103.6694 on

July 1st 2019. The bonds are due on July 1, 2024, with interest payable each January 1 and

July 1. The market rate at the time of the bond issuance was 3.2 Percent. Use the effective-

interest method to calculate both the interest expense and the amortization of the bond discount

when each interest payment is made.

[Adjusting Entry Required]