On December 31, 2021, WEI Inc. issues 8% 10-year bonds payable with a maturity amount

of $500,000. The market interest rate of interest is 9%. The market price of the bonds drops, and

the company receives $470,000 at issuance.

WEI Inc. uses the effective-interest method of amortization. Interests are paid semi-annually.

* Round answers to the nearest dollar.

Required:

1. Prepare an effective interest method amortization table for the first four semi annual interest

periods.

2. Record issuance of the bonds on December 31, 2021, the interest and amortization on June 30,

2022 and December 31, 2022.

3. Show how Google Inc. would report the remaining bonds payable on its balance sheet at

December 31, 2022.