On January 1, 2020, JetNew, issued $1,000,000 face value, 5-year bonds with a stated rate of 8% at an effective rate of 7% which brought in $1,044,913. Interest is paid semi-annually on July 1 and December 31. JetNew uses the effective-interest method of amortization. Prepare the amortization table for the first 3 payment periods. (3%)

Question 1. (10%) On January 1, 2020, JetNew, issued $1,000,000 face value, 5-year bonds with a stated rate of 8% at an effective rate of 7% which brought in $1,044,913. Interest is paid semi-annually on July 1 and December 31. JetNew uses the effective interest method of amortization. a) Prepare the amortization table for the first 3 payment periods. (3%) 3 Prem Bal. Semi Annual Interest Date Interest Payment Interest Expense Prem Amort Amt Carrying Amt Prepare entries for the following transactions: b) Issuance of the bonds on January 1, 2020 (2%). c) Payment of interest and amortization of discount or premium on July 1, 2020 (2%). d) Explain the advantages and disadvantages of financing with debt versus equity (3%)