Celine Dion Company issued $20,000,000 of 12% 10-year bonds on

January 1, 2022 at 114.00 Interest is payable semiannually on July 1 and January 1.

Dion Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7775%

(Market interest rate at issuance).

Instructions:

Prepare the journal entries to record the following.

(Round to the nearest dollar.)

(a) The issuance of the bonds. jan

(b) The payment of interest and related amortization on July 1, 2020.

(c) The accrual of interest and the related amortization on December

31,2020