Ford Co issued, on January 1, 2019 $1,000,000 of 8% bonds due in 5 years, with interest payable annually on December 31. Market interest rate is 9%.

a) A calculate the present value of the bond and make the journal entry on January 1, 2019

b) Complete an amortization table for each of the five periods (1/1/19, 12/31/19, 12/31/20, 12/31/21, 12/31/22, 12/31/23) including cash owed for interest, amortization of bond discount, bond payable book value.

c) Prepare Journal entries for: 1) recognize the interest expense on December 31, 2019, 2) recognize the interest expense on December 31, 2020, 3)record the repayment of the loan principal on December 31, 2023