On January 1, 2019 Maxxum PLC issued 12% bonds with a face value of 800,000 and offering bondholders a 10% yield. The bonds are dated January 1, 2019 and mature January 1, 2024 with interest payable December 31 each year. (100 POINTS)

Instructions

1. Prepare the journal entry at the date of the bond issuance.
2. Prepare a schedule of interest expense and bond amortization for 2019-2021
3. Prepare the journal entry to record the interest payment and amortization for 2019
4. Prepare the journal entry to record the interest payment and the amortization for 2021.