A company issued $4,000,000 of 8% bonds on October 1, 2014, due on October 1, 2019. The interest is to be paid twice a year on April 1st and October 1st. The bonds were sold to yield 10% effective annual interest. The company closes it's books annually on December 31st. Carrying amount of bonds: $3,691,117 1. Prepare the adjusting entry for December 31,2015 using the STRAIGHT LINE INTEREST METHOD. 2.Compute the STRAIGHT LINE INTEREST EXPENSE to be reported in the income statement for the year ended December 31,2015.