1. WS Inc. issued $100,000 of 10% bonds on January 1, 2016. The bonds are due December 31, 2017 (2 years) and were issued to yield 10% (market interest rate is 12%). Interest will be paid annually.

1. Calculate the price of the bonds.
2. Using the effective interest rate of amortization, prepare an amortization chart for WS Inc. showing both 2016 and 2017 calculations.
3. Show all applicable journal entries:
   1. Issuance of bonds
   2. 2016 and 2017 interest payments
   3. Retirement of bonds