Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method. Premium Mechell Inc. issued 540 of its 6% $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each June 30 and December 31 and were issued to yield 5%. The bonds mature in five years on December 31, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the seiling price of the bonds b. Prepare an amortization schedule for the first two years of the bond term c. Prepare journal entries on the following dates 1.January 1 of Year 1, bond issuance 2. June 30 of Year 1, interest payment 3. December 31 of Year 1, interest payment. Bond Selling Price Amortization Schedule Journal Entries Note: Round amounts indule to the nearest whole dollar. Note: Do not use negatives Date Cash Interest Expense Premium Amortization Bonds Payable, Net Jen, Year Jun 30 Year 05 03 05 Dec 31 Years 01 30, Year 08 101 Dec 31,Year 2 05 01 Check Mitchell Inc. issued 540 of its 6% $1.000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each June 30 and December 31 and were issued to yield 5%. The bonds mature in five years on December 31, and the company uses the effective interest method to amortize bond discounts or premiums Required a. Determine the selling price of the bonds b. Prepare an amortization schedule for the first two years of the bond term. c. Prepare journal entries on the following dates 1. january 1 of year 1. bond issuance 2. June 30 of Year 1 interest payment 3. December 31 of year, interest payment. Bond Selling Amortization Schedule Journal Entries Note: Round your to the nearest whole dollar. 1. Dec 31, Check Account Name