6. Nurse Company authorized a $1,000,000, five-year, 12% bond issue dated November 1, 2020, with interest being paid on April 30 and October 31. On November 1, 2020, the bonds were sold for $994,680.

Required:

1. a) Record the journal entry to record the sale of the bonds.

2. b) Nurse Company has a December 31, 2020 year end. Prepare the required adjusting entry assuming that

   straight-line amortization is used. Show your calculations.

3. c) Was the bond issue at par, at a discount, or at a premium? How do you know?

4. d) Will interest expense be greater than or less than the cash payments for interest?