Marigold Corp. issued $5,040,000 of 8% bonds on October 1, 2020, due on October 1, 2025. 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. Marigold Corp. closes its books annually on December 31.

Required:

1. Complete the bond amortization schedule for the dates indicated. Use the effective-interest method

2. Prepare the adjusting entry for December 31, 2021. Use the effective-interest method.

3. Compute the interest expense to be reported in the income statement for the year ended December 31, 2021.

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