Bondo Inc. (Bondo) issued $15,000,000 of 8% debentures on May 1, 2020. The bonds pay interest semiannually on May 1 and November 1. The first interest payment starts on 11/1/2020. The maturity date on these bonds is November 1, 2028. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Bondos fiscal year end is December 31 of each year.

Instructions Using Excel develop the following: Calculations to determine the price the bonds sold for (i.e., amount of cash received) on May 1, 2020.

Prepare an amortization table for the bonds (through November 1, 2028)

Prepare all journal entries for the year ended December 31, 2020, related to the sale and servicing of the bonds. This would include any appropriate adjusting entries (i.e., accruals) at year end.

Describe the impact of the bond related accounting (part 3) on Bondos income statement (for the year ended December 31, 2020) and Balance Sheet (as of 12/31/20)

Describe in one or two sentences how the accounting would have been different if Bondo had used the straight-line method of amortizing discounts and premiums. Discussion should include quantitative changes that result from this alternative method.