Waterway Ltd. issued a $133,000, 3-year, zero-interest bond dated January 1, 2020. The market interest rate for similar bonds was 9%. Assume the company used the effective interest method of amortization.

Prepare the journal entry for the issue of the bond.

Prepare a schedule of bond discount/premium amortization.

Prepare the journal entry at December 31, 2020, assuming the companys year-end was December 31.