On January 1, 2020, Santiago Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest

rate of 10%, payable semiannually on June 30 and December 31. The values are:

On January 1, 2020, Santiago Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: .386 .322 .377 .312 Present value of 1 for 10 periods at 10%. Present value of 1 for 10 periods at 12%. Present value of 1 for 20 periods at 5%... Present value of 1 for 20 periods at 6%. Present value of annuity for 10 periods at 10% Present value of annuity for 10 periods at 12% Present value of annuity for 20 periods at 5% Present value of annuity for 20 periods at 6% 6.145 5.650 12.462 11.470 Calculate the issue price of the bonds. Now assume the issue price was $884,000. Prepare the amortization for 2020, using the effective method. Now also assume the fair value of the bonds was $878,000. Prepare the journal entry to make the adjustment at fair value