DONNER Company issued 3-year, 12% bonds with face amount of 4,000,000. Interest is payable semiannually on April 1 and October 1. The bonds were issued on April 1, 2021 for 4,203,028 which represents an effective interest cost of 10% per year.

Requirements:

1. Prepare an amortization table using the effective interest method.
2. Prepare journal entries for 2021.
3. Compute or provide the answers for the following:
   1. How much is the interest paid for the year ended, December 31, 2021?
   2. How much is the interest expense for the year ended, December 31, 2021?
   3. What is the carrying amount of the bonds on December 31, 2021?