On July 1, 2016 Pillar Company issued 8% bonds in the face amount of $5,000,000, which mature

Question:

On July 1, 2016 Pillar Company issued 8% bonds in the face amount of $5,000,000, which mature on July 1, 2022. The bonds were issued for $4,365,000 to yield 11%. Pillar uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2019