On January 1, 2017, Sheffield Corporation issued $1,750,000 face value, 6%, 10- year bonds at $1,627,087. This price resulted in an effective-interest rate of 7% on the bonds. Sheffield uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

1.Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue.

2..Bridgeport Corporation sold $3,270,000, 9%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Bridgeport Corporation uses the straight-line method to amortize bond premium or discount.

a.) Show the balance sheet presentation for the bond issue at December 31, 2017, using the 107 selling price.