Burr Motor Company, a manufacturer of small$-$ to medium$-$sized electric motors, needs additional funds to market a revolutionary new motor. Burr has arranged for private placement of a $$50,000,5-$year, $11\%$ bond issue. Interest on these bonds is paid annually each year on August $31.$ The issue was dated and sold on September $1,2018,$ for proceeds of $$48,197\mathrm{.}61$ to yield $12\%.$ Burr Motor Company has December $31$ fiscal year$-$end.

Required:

$1.$ Prepare a bond interest expense and discount amortization schedule showing interest expense for each interest period using the effective interest method.

$2.$ Prepare journal entries to record the issuance of the bonds and the interest entries for $2019$ and $2020$ using $($a$)$ the effective interest method and $($b$)$ the straight$-$line method.