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Question 5 (10 Marks) On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025. Interest is to be

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Question 5 (10 Marks) On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% 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. Required: 1. Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use the effective-interest method. (4marks) Interest expense Cash interest paid Premium Amortization Carrying amount of bonds $432,444 Dec. 31,2020 June 30, 2021 Dec. 31, 2021 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) Debit Credit 3. Assume instead that Whitfield is using the straight line method to amortize the bond premium. What would be the carrying amount of the bonds at December 31, 2021

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