Assume Company A announces an offer to issue bonds on January 1, 2019 with a $100,000 par value, an 8% annual contract (coupon) rate paid semiannually and a 2 year life. Also assume YTM (Yield To Maturity) for company A bonds is 10%.

1. Calculate price of the bond.

2- Complete the following table using the effective interest method

Date	Cash interest payment	Bond interest expense	Discount amortization	Unamortized discount	Carrying value
1/1/2019
6/30/2019
12/31/2019
6/30/2020
12/31/2020

3- Record all journal entries below

General Journal

Date	Accounts	Debit	Credit
1/1/2019
6/30/2019
12/31/2019
6/30/2020
12/31/2020