On January 1, 2020, Pirate Industries issued $900,000 bonds payable with a stated interest rate of 4%. Interest is paid semiannually, each June 30 and December 31. The bonds mature in 5 years. The bonds sold to yield an effective rate of 6%.

1. Prepare the journal entry Pirate Industries will make when they issue the bonds on January 1, 2020.

2. Prepare an effective interest rate table (amortization schedule) for the bonds for the period from January 1, 2020 through December 31, 2023.