1. A company issues 8%, two year bonds on December 31,2019, with a par value of $7,000 and semiannual interest payments. On the issue date, the annual market interest rate for these bonds is 6%, which implies a selling price of 103.71 or $7,260.
   1. Calculate amortization for these bonds using straight-line method
   2. Prepare journal entry to record issuance of the bonds on 12/31/2019
   3. Prepare journal entry to record interest payment and amortization
   4. Prepare journal entry to record maturity

2. On January 1, 2019 a company borrows $1,000 cash by signing a four-year 5% installment note. The note requires four equal payments of $282, consisting of accrued interest and principal on December 31^st of each year from 2019 through 2022.
   1. Prepare schedule with Balance due, Interest, and Principal payments each year