Payne Corp. issued $1.22 million of 5-year, 4% bonds on January 1, 2021. The bonds were dated January 1, 2021 and pay interest semi-annually on July 1 and January 1. The bonds were sold for $1,276,255 when the market interest rate was 3%. Payne Corp. has a December 31 year-end. 1. Were the bonds issued at a premium or a discount? Why? (2 marks) 2. Prepare an amortization schedule for the first three interest payments. (12 marks) 3. Prepare the journal entry to record the first interest payment on July 1, 2021. (3 marks) 4. Prepare the journal entry to accrue interest expense on December 31, 2021. (3 marks) 5. Prepare the journal entry to record the second interest payment on January 1, 2022. (2 marks)