On Jan 1, 2019 Lewis Corporation issued $800,000 of 8% serial bonds that mature and equal amounts at the end of each year for the next four years. Interest is payable annually on December 31 of each year. The bonds were issued at a yield of 6%.

1. Compute the selling price of the bond. INTEREST PAYMENT CHANGES EACH YEAR WITH SERIAL BOND

2. Prepare the journal entry made by Louis to record the issuance of the bonds.

3. Prepare any and all journal entries to be made by Lewis on December 31, 2019 relative to the bond issue. Lewis uses the effective interest method to amortize any bond discount or premium.

4. Prepare any and all internal injuries to be made by Lewis on December 31, 2020 relative to the bond issue.