Blossom Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%.

a)	Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2016.

(b)	Prepare a bond amortization schedule up to and including January 1, 2017, using the effective-interest method.