Question $5(10$ Marks$)$

On December $31,2020,$ Whitfield Corp. issued $ $400,00010\%$ bonds, due on December $31,2025.$ Interest is to be paid semi$-$annually on June $30$ and December $31.$ The bonds were sold at a market value of $$432,444$ to yield $8\%$ effective annual interest. Whitfield has a calendar year end. Round to two decimal places. $($Need not show calculations$)$

Required:

$1.$ Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use the straight line method of amortization. $(4$marks$)$

Cash interest paid Interest expense Premium Amortization Carrying amount of bonds

Dec. $31,2020$ XXXXXXXXX XXXXXXXXXX XXXXXXX $$432,444$

June $30,2021$ XXXXXXX

Dec. $31,2021$ XXXXXXX

$2.$ Prepare the journal entry for Whitfield at December $31,2021,$ to record the payment of $6$ months$$ interest $($from June $30$ to December $31)$ and related expense. $(3$ marks$)$

$3.$ What is the carrying amount of the bonds at December $31,2021?(3$ marks$)$