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I. On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest annually on

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I. On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest annually on December 31, and will mature on December 31, 2023. The following schedule was prepared by the accountant for 2021. Annual Interest Period Interest to be Paid Interest Expense Bond Amortization Carrying Value. $3,900,000 1 $320,000 $351,000 $31,000 3,931,000. Instructions (10%) On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.) 1. What is the stated interest rate for this bond issue? 2. What is the market interest rate for this bond issue? 3. What was the selling price of the bonds as a percentage of the face value? 4. Prepare the journal entry to record the sale of the bond issue on December 31, 2020. 5. Prepare the journal entry to record the payment of interest and amortization on December 31, 2021.

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