On January 1, 2016, Sally Gladson issued $850,000 of $1,000 par value, 6%, six year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due on July 1, 2016. The bonds are callable at 102 on or after July 1, 2018. The market rate of interest for similar bonds on the date the bonds were issued was 5%. On July 2, 2018, 75% of the bonds were called.

1. Determing the issue price of the bond

2. Prepare the amortization table for the bond issue, assuming that Sally Gladson uses the effective interest method

3. Prepare the journal entry for the issuance of the bond

4. Prepare the journal entry to record the first interest payment

5. Prepare the journal entry to record the call of the bonds.