tedness. Biotech Inc.'s June 30, 2021, ng annual P15-5B On December 31, 2020, Sierra Corp. issues 4 percent, 10-year convertible bonds with a maturity value of $4,500,000. The semi-annual interest dates are June 30 and Decem- ber 31. The market interest rate is 5 percent, and the issue price of the bonds is 922054. Sierra Corp. amortizes bond premium and discount by the effective-interest method. 2 Issuing convertible bonds at a discount, amortizing by the effective interest method, retiring bonds early, converting bonds. reporting bonds payable the balance sheet Required 1. Prepare an effective-interest method amortization table for the first four semi- annual interest periods. 2. Journalize the following transactions: a. Issuance of the bonds on December 31, 2020. Credit Convertible Bonds Payable. b. Payment of interest on June 30, 2021. c. Payment of interest on December 31, 2021. d. Retirement of the bonds with a maturity value of $200,000 on July 2, 2022. Sierra Corp. purchases the bonds at 96.00 in the open market. Chapter 15 Long-Term Li