QUESTION $1(30$ POINTS$)$

Sesame Company issued TL $80\mathrm{.}000$ of $16\%,5$ year bonds at TL $85\mathrm{.}594$ on January $1,2014.$ Interest is

paid semiannually, and the effective interest method is used for amortization. The market interest rate

for similar bonds is $14\%.$

a$.$ Prepare first three lines of the schedule of amortization.

b$.$ Prepare the journal entries for the following dates.

Journal for January $1,2014,$ the issue date $(5$ Points$)$:

Journal for July $1,2014,1^{st}$ interest payment date $(5$ Points$)$:

Journal for January $1,2015,2^{nd}$ interest payment date $(5$ Points$)$: