Star Corporation issued $900,000 of 8% bonds on September 1, 2019, due on September 1, 2024. The interest is to be paid twice a year on March 1 and September 1. The bonds were sold to yield 10% effective annual interest. Star Corporation closes its books annually on December 31.

(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below using Excel. You can round to the nearest dollar or penny. Use the effective-interest method.

Date	Credit Cash	Debit Interest Expense	Credit Bond Discount	Carrying Amount of Bonds
Sep. 1, 2019				Use the NPV or PV formula in Excel; see posted bond excel sheet in the classroom
Mar. 1, 2020 .continue schedule (use Excel)

(b) Prepare the journal entries for the following:

1. September 1, 2019 bond issue

2. Adjusting entry for December 31, 2019 (adjusting entry should cover 4 months)

3. March 1, 2020 entry

4. September 1, 2020 entry

5. Adjusting entry from December 31, 2020

6. March 1, 2021entry

(c) Compute the interest expense to be reported in the income statement for the year

ended December 31, 2019 and December 31, 2020.

(d) Complete an amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required).