• On February 1, 2016, the company had a bond issue with principal of $500,000 (Bond #2). The bond issue has a ten-year life. Interest is payable semi-annually on February 1 and August 1. The coupon rate is 7%. The market rate of interest at issue was 6%. On August 2, 2022, the company called the entire bond issue at 110.

Required

2. For Bond #2:

1. Compute the bond price
2. Prepare an amortization table for the life of the bond.
3. Prepare the entry required on 12/31/18 for the accrual of interest
4. Prepare all required journal entries for 2019 and 2020.
5. Record the bond call on November 2, 2022.