On janurary 1, 2017, Burch products issued $10,000,000 of 4%, 3 year bonds. Interst is payable annually. The Market Yield for bonds of similar risk is 5%. burch uses the effective interst method to amoritze Bond premium of discount.

Required:

a) prepare a suitable amoritization table for the term of the bond.

b)prepare the journal entry to record the issuance of the bonds and all additional entries required through january 1, 2018