On December 31, 2019, when the market rate was 12%, Drum Corp
issued $2,000,000, 14%, 5-year bonds. Interest is payable
semi-annually on June 30 and December 31. The bonds were issued for
$2,147,214, and the corporation uses the effective interest method
of amortizing bond premium or discount.
1. Prepare the amortisation table
2. Prepare the journal entries to record the issuance of the
bonds and the first interest payment