Problem$-$solving$\_$question: $($CLO # $2)$

O'Malley Company issued $$800,000$ of $16\%$ bonds on January $1,2021,$ for $0\mathrm{.}981405$ due on December $31,2024.$ The interest is to be paid twice a year on December $31$ and June $30.$ The bonds were sold to yield $20\%$ effective annual interest. O'Malley Company closes its books annually on December $31.$

Instructions:

$($a$)$ Complete the amortization schedule for the period from January $1,2021$ to December $31,2021.($Round all answers to the nearest dollar.$)$ Use the effective interest method.

$($b$)$ Prepare the journal Entry on January $1,2021,$ and the adjusting entry for December $31,2021.$ Use the effective interest method.

$($c$)$ Compute the interest expense to be reported in the income statement for the year ended December $31,2021.$