Kirkland Corp issued $811,000, 7%, 10 year bonds on January 1, 2015 for $755,893.

This price resulted in an effective interest rate of 8% on the bonds. Interest is

payable on July 1 and January 1. Kirkland uses the effective interest method to

amortize bond premium or discount.

Questions:

1). Prepare an amortization table for through year 2016.

2). Prepare the journal entry to record the issuance of the bonds.

3). Prepare the journal entry to record payment of interest and the discount

amortization on July 1, 2015 assuming that interest was not accrued on June 30.

4). Prepare the journal entry to record the accrual of interest and the discount on

December 31, 2015.