On January 1, 2020, Jens Corp. acquired 8%, $ 100,000 (face value) bonds of World Wide Ltd., to yield 9% for $95,517.20. The bonds were dated January 1, 2020, and mature on December 31, 2025, with interest payable each year on January 1. Jen intends to hold the bonds to maturity, and will use the FVNI model and the effective-interest method of amortization of bond premium or discount. Assume that the fair market value of the bonds was equal to Jens investments book value in 2020, but in 2021, the fair market value of the bonds were $101,000 at the end of 2020.

Required: (Round all answers to the nearest dollar.)

(1) Prepare an amortization schedule proving the price that Jen paid for the bonds.

(2) Prepare the following entries in Jen's books:

a) Acquisition of bonds on January 1, 2020,

b) Year-end adjusting entry at December 31, 2020, and December 31, 2021.

c) Receipt of the first interest payment on January 1, 2021.

d) Any adjusting entry required at the end of 2020 in addition to the any journal entries recorded above.