Mars Cor. issued $6,000,000 of 8% bonds on January 1, 2020, due on January 1, 2025. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold for $5,536,696 and yield a 10% effective annual interest rate. Grove Corporation closes its books annually on December 31. a) Prepare the bond amortization schedule for the Grove Corporation bond for the first 2 years.

Mars Cor. issued $6,000,000 of 8% bonds on January 1, 2020, due on January 1, 2025. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold for $5,536,696 and yield a 10% effective annual interest rate. Grove Corporation closes its books annually on December 31. a) Prepare the bond amortization schedule for the Grove Corporation bond for the first 2 years. Cash Interest Interest Expense Amortization Carrying Value 5,536,696 Date 1/1/2020 7/1/2020 1/1/2021 7/1/2021 1/1/2022 b) Prepare the journal entry to record the bond issuance: Date Account Debit Credit Prepare the journal entry for July 1, 2020, and the adjusting entry for December 31, 2020, if any. Use the effective-interest method. Date Account Debit Credit