On January 1, 2019, Schultz Corporation issued a $100,000, 6% bond payable (7% market rate). The bonds were dated January 1, 2019, pay interest each December 31, and mature in five years.

Requirements (hint: use the table from problem 1 for computations):

a. Give the journal entry to record the issuance of the bonds.

b. Give the journal entry to record the interest payment on December 31, 2019, assuming straight-line amortization.

c. Give the journal entry to record the interest payment on December 31, 2019, assuming effective interest amortization.