3 year Bonds are issued at face value of $100,000 on January 1, 2016, and a stated

interest rate of 8%.

a. Calculate the issue price of the bonds assuming a market interest rate of 10%.

b. Prepare the schedule of amortization using the effective interest method.

c. Prepare journal entries of 1/1/2016, 7/1/2016 & 12/31/2016.