On January 1, 2018 Ellison Co. issued eight-year bonds with a face value of $100,000,000 payable semiannually on June 30 and December 31. The bonds are callable at 101. Coupon rate is 8% Market rate is 6%

a) What is the issue price of the bonds

b) Prepare an amortization table using the effective interest rate method for the eight years of the bonds.

c) Prepare the journal entries for the interest payments on June 30, 2018 and December 31, 2018.

d) Assume that the bonds are called on December 31, 2023 at 101. Prepare the journal entry to record the call.