Bond interest and discount amortization.

Orange Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Orange Corporation closes its books annually on December 31.

Instructions (a) Calculate the present value of the bond.

(b) Prepare an amortization table for the dates October 1, 2020, April 1, 2021, and October 1, 2021. (Round all answers to the nearest dollar.) Use the effective-interest method.

(c) Prepare the entry to issue the bond on October 1, 2020.

(d) Prepare the adjusting entry for December 31, 2020. Use the effective-interest method.

(e) Prepare the entry on April 1, 2021 (f) Prepare the entry on October 1, 2021.