Sal Minella owns a restaurant that exclusively features poultry dishes on the menu. Due to problems with suppliers he wants to vertically integrate his operation from merely a restaurant to raising the chickens as well as cooking, roasting baking, grilling and frying them. He believes this way he can control the entire processing chain from beginning to end and offer a better product and experience to his clientele. In order to start his chicken farming operation, he issues $100,000 worth of bonds. All the bonds are issued and sold on September1, 2020 and have a maturity date of September 1, 2025. The face interest rate on the bonds is 6% and the market rate of interest is 8%. Interest is paid every six (6) months on March 31^st and October 1^st. (Both interest rates are annual rates). The proceeds from the sale of the bonds amounted to $91,890.

REQUIRED:

1. State whether the bonds sold at face value, at a premium, or at a discount and support your choice. (State the reason why you picked the option you did)
2. Complete the bond amortization schedule through October 1, 2021.
3. Prepare the entry to record the sale of the bonds.
4. Prepare any adjusting if needed for the bonds as of December 31, 2020 or explain why one isnt needed.
5. Prepare the entry to record the interest payments on March 1, 2021.
6. Prepare the entry to record the interest payment on October 1, 2021.