HL Corporation issued $600,000 of 8% bonds on October 1, 2018, due on October 1, 2023. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. HL Corporation closes its books annually on December 31.

Selling price of the bond = PV of principals + PV of interest payment =

Required:

1. Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective interest method.

B. Prepare the adjusting entry for December 31, 2019. Use the effective interest method.

Date	Description	Debit	Credit
12/31/2018

C. Prepare the entry for April 1, 2020. Use the effective interest method

Date	Description	Debit	Credit

C. Compute the interest expense to be reported in the income statement for the year ended December 31, 2019

Interest expense for year 2019 =