Question: On January 1, 2012, Big E Electronics issues a $100,000, 8-year, 8% bond for $105,970. The market rate of interest at the time of issuance

On January 1, 2012, Big E Electronics issues a $100,000, 8-year, 8% bond for $105,970. The market rate of interest at the time of issuance was 7%. Interest is payable annually on December 31.
Required
a. Prepare entries for the bond issuance and the first three interest payments.
b. Prepare an amortization schedule for the bond.

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