TUV Company sold a 5 year, $5,000,000 bond at 97. The face interest rate is 6%

1. Prepare the journal entry necessary to record the sale of the bond.

2. Assuming straight line amortization, calculate the annual interest expense and prepare the journal entry necessary to record the annual interest expense.

3. At year 3.5, the bond is called at 103. Prepare the journal entry necessary to record the bond redemption.