Sydney Inc. purchased bonds from Ryley Corp. on January 1, 2018. The bonds mature on January 1, 2019. Interest is paid on July 1, 2018 and January 1, 2019. Information on the bond is as follows:

Purchase price 10,000

Face Value 9000

Annual coupon interest rate 6%

annual market interest rate 7%

years to maturity 1

number of times interest is paid 2

1. Prepare Sydney, Inc's journal entry to record the purchase of Ryley Corp. bonds on January 1, 2018.

2. Prepare the amortization table for the bond assuming the bond is held to maturity

date	cash received	interest revenue	bond discount amortization	carrying amount of bond
1/1/18	NOTHING	NOTHING	NOTHING
7/1/18
1/1/19

3. Prepare Sydney, Inc's journal entry to record the first semi-annual interest payment on July 1, 2018

4. Assume Sydney, Inc. sells the bonds on July 1, 2018 at 102 after receiving the first semi-annual interest payment in the step above (therefore, interest revenue is NOT part of the journal entry below) Prepare Sydney Inc's journal entry to record the sale of the bond.