On January 1, 2025, Waterway Company sold 11% bonds having a maturity value of $800,000.00 for $895,822.48, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2025, and mature January 1, 2030, with interest payable December 31 of each year. Waterway Company allocates interest and unamortized discount or premium on the effective-interest basis.

1. Prepare the journal entry at the date of the bond issuance

2. Prepare a schedule of interest expense and bond amortization for 20252027.

3. Prepare the journal entry to record the interest payment and the amortization for 2025.

4. Prepare the journal entry to record the interest payment and the amortization for 2027