a) Were the bonds issued at a discount or at a premium?

The bonds were issued at a ......?

b)What is the bonds face value?

c) What will the bonds amortized cost be at the maturity date?

d) What will be the total interest payment over the five-year life of the bonds? Total interest expense?

e) Prepare the journal entry to record the issuance of the bond.

Prepare the journal entry for the first interest payment

Prepare the adjusting journal entry on December 31, 2020, assuming this is Sunlands year end.

Prepare the journal entry for the payment of interest on April 1, 2021. Assume no reversing entries have been used.

Sunland Corporation issued $320,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue. Interest Payment Interest Expense Amortization Semi-Annual Interest Period Apr.1, 2020 Oct. 1, 2020 Apr. 1, 2021 Oct. 1, 2021 Apr. 1, 2022 Oct. 1, 2022 Apr. 1, 2023 $6,400 6,400 6,400 6,400 6,400 6,400 $5,021 5,001 4,980 4,958 4,937 4,915 $1,379 1,399 1,420 1,442 1,463 1,485 Bond Amortized Cost $334,755 333,376 331,977 330,557 329,115 327,652 326,167