Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other information is as follows: Required: 1 Calculate: Term in years: Face value of bonds issued: Specified interest rate each payment period: Issue price: a. The amount of interest paid in cash every payment period. 2 $200,000 $206,000 656 b. The amount of amortization to be recorded at each interest payment date (use the straight- line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. Amortization Table B C D E (A+D) Period Beg bond carrying Year ending amount Periodic interest interest expense paid Actual cash Periodic discount (prem.) Ending bond carrying amort amount 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six- month period. Round all percentage calculations to two decimal placed. Use the following format: B Six month period ending Bond Six-month carrying interest amount expense 96 Year (B/A) 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 4 Prepare the journal entry for December 31, 2019.