Solar Corporation issued 10-year 1,000 bonds at face value $100 per bond, on Jan. 1, 2021 with a stated interest rate 8%. Interest paid semiannually on 30 June and Dec. 31.

Required:

1. Calculate the issue price of bonds; if you know that the market interest rate 4%?
2. Prepare the amortization schedule?
3. Prepare the entries to record the issue of bonds at 1 Jan, and payment the interest at June 30 and December 31?
4. If the company recall the bonds at 102 on Dec. 31, 2025; and paid other recall costs $500. Prepare the entry?