J & J Corporation issued $800,000 of 8% bonds on October 1, 2015, due on October 1, 2020. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. J & J Corporation closes its books annually on December 31. Required: 1. Complete the following amortization schedule only for the dates indicated. (Round all answers to the nearest dollar.) Use the effective-interest method. Debit Credit Carrying Amount Credit Cash Interest Expense Bond Discount of Bonds October 1, 2015 $738,224 April 1, 2016 October 1, 2016 2. Prepare the adjusting entry for December 31, 2015. Use the effective-interest method. 3. Compute the interest expense to be reported in the income statement for the year ended December 31, 2016.