On June $1,2024,$ Carla Vista Bottle Company sold $$2,880,000$ in long$-$term bonds for $$2,526,064.$ The bonds will mature in $10$ years and have a stated interest rate of $8\%$ and a yield rate of $10\%.$ The bonds pay interest annually on May $31$ of each year. The bonds are to be accounted for under the effective$-$interest method.

Your answer is partially correct.

Construct a bond amor tization table for this problem to indicate the amount of interest expense and discount amortization at each May $31.$ Include only the first four years. $($Round answers to $0$ decimal places, eg$.25,000)$

Assuming that interest and discount amortization are recorded each May $31,$ prepare the adjusting entry to be made on December $31,2026.($Credit account titles are automatically indented when the amourt is entered. Do not indent manually, If no enty is required, select $"$No Entry" for the account titles and enter O for the amounts. List oll debit entries before credit entries. Round answers to O decinal places, es$.25,000\mathrm{.}1$

Account Titles and Explanation

Debit

Credit