On January 1, 2021, Blossom Ltd. issued bonds with a maturity value of $8,700,000 when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The companys year end is December 31.

Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275.)

Prepare a bond amortization schedule from the date of issue up to and including January 1, 2023. (Round answers to 0 decimal places, e.g. 5,275.)

Prepare all of the required journal entries related to the bonds that Blossom Ltd. will record during 2021, including any adjusting journal entries at December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)