On January 1, 2020, Company A issued $600,000 of 10-year bonds for cash proceeds with a stated rate of 14%.Interest is paid semi-annually on June 30 and December 31. The annual market rate of interest is determined to be 12%.Use the effective interest method to amortize the discount/premium.

Instruction: (1)Record the journal entries on the followingdates:Jan1.2020,andDec31,2020.Show the bond amortization table for the first year.

(2)Assume that onJan 1, 2021Company A calls backhalfof this 10-year bonds at a cost of $300,000. Record the journal entry.