4 1 6 -- 75% + QUESTION 1 (30 POINTS) Sesame Company issued TL 80.000 of 16%, 5 year bonds at TL 85.594 on January 1, 2014. Interest is paid semiannually, and the effective interest method is used for amortization. The market interest rate for similar bonds is 14%. a. Prepare first three lines of the schedule of amortization. (15 points) Interest Payment Periods Interest Expense Cash Interest Paid Unamortized Premium Carrying Value Amortization Issue Date 1 2 b. Prepare the journal entries for the following dates. Journal for January 1, 2014, the issue date (5 Points); Date Account Title and Description Debit Credit Journal for July 1, 2014, 1M interest payment date (5 Points): Date Account Title and Description Debit Credit Journal for January 1, 2015. 21 interest payment date (5 Points); Date Account Title and Description Debit Credit