On January 1, 2015, Lowry Co issued ten year bonds with a face value of $2,000,000 and a stated interest rate of 11%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Table values are:

Instructions:

1. Calculate the issued price of the bonds using Excel.

2. Complete an amortization table.

3. On January 2, 2017 the bonds were called at 101. Complete the journal entry for January 2, 2017 using the effective interest method.