Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 126,6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each June 30, and December 31, and were issued to yield 5%. The bonds mature December 31, 2024, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization schedule for the full bond term. c. Prepare journal entries on the following dates. 1. January 1, 2020, bond issuance. 2. June 30, 2020, interest payment. 3. December 31, 2020, interest payment. Bond Selling Price Amortization Schedule Journal Entries a Selling price of bonds $ 131.506 x b. vs Note: Round amounts in schedule to the nearest whole dollar. Use rounded amounts for later calculations in the schedule. Note: Include any net rounding difference for Bond Payable, Net in the interest expense amount for Dec 31, 2024. Date Cash Interest Expense Discount Amortization Bonds Payable, Jan 1, 2020 $ 131,506 x June 30, 2020 $ 3.780 S 3,288 $ 492 131,014 X Dec 31, 2020 3,780 3,275 505 130,509 X June 30, 2021 3.780 3.263 517 129.992 X Dec 31, 2021 3,780 3,250 530 129,462 X June 30, 2022 3,780 3,237 543 128,918 x Dec 31, 2022 3,780 3.223 557 128,361 x June 30, 2023 3,780 3.209 571 127,790 X Dec 31, 2023 3,780 3195 585 127,205 x June 30, 2024 3,780 3.180 600V 126,605 x Dec 31, 2024 3.780 3.165 605 x 126,000 Total $ Ox $ Ox $ 605 x Dr. Cr. 0 5,506 x 126,000 X X Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name 1. Jan 1, 2020 Cash 131,506 X Premium on Bonds Payable Bonds Payable 2. June 30, 2020 Interest Expense 3,288 Premium on Bonds Payable 492 Cash 3. Dec 31, 2020 Interest Expense 3,275 Premium on Note Payable 505 Cash 0 3,780 X 3.780