Note: For all problems, assume the fiscal year ends on December 31. Problem 1: The Sherwood Company issues $350,000 of 8% bonds on January 1, 20x1. The bonds pay interest on July 1 and January 1. The maturity date of the bonds is January 1, 20x4. The bonds yield 10%. On July 1, 20x2 (after payment of the semi- annual interest) Sherwood buys back $175,000 face value of bonds for $173,000. REQUIRED: 1) Using the effective interest method, construct a bond amortization schedule for the full term of the bond (January 1, 20x1 through January 1, 20x4). [NOTE: Use EXCEL to calculate the issuance price of the bond and to prepare the amortization schedule.) 2) Prepare all journal entries from the time of issuance through July 1, 20x2