Mathieson Co. issues a $15,000,000, 7.0 % bond on 1 October 20X4. At this time, market interest rates are in the range of 6%. The bond had a 10-year life from 1 October 20X4, and paid interest semi-annually on 31 March and 30 September. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.)

Required: 1.Calculate the proceeds that would be raised on bond issuance. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

2. Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

3. Prepare journal entries for 20X4 and 20X5, using the effective interest method. ABC has a 31 December fiscal year-end. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)