Requirements (Use a financial calculator for any present value computations and round your final answers to the nearest dollar. Record debits first, then credits. Explanations are not required.)

a.	Prepare journal entries to record:
	i.	the sale and retirement of the bonds in scenario 1;
	ii.	the sale of the bonds in scenario 2 and payment of interest on December 31, 2018; and
	iii.	the sale of the bonds in scenario 3.
b.	Prepare a schedule of interest expense and bond amortization during the life of the bond in scenario 3.

1. Here Today Ltd. (HTL) issued $4,000,000 in stripped (zero-coupon) bonds that mature in 12 years. The market rate of interest for bonds of a similar nature is 1.2% compounded monthly. Five and one-half years after issue, when the market rate was 3.6%, HTL repurchased $1,600,000 of the bonds on the open market. HTL accrues interest monthly. Bonds are carried at amortized cost. 2. Two Plus Two Accountants sold $6,000,000 of ten-year bonds that pay the then-current market rate of interest of 7% annually on December 31. The bonds are dated January 1, 2018, but were not issued until February 1, 2018. Two Plus Two's year-end is December 31. Two Plus Two has adopted a policy of crediting interest expense for the interest accrued up to the date of sale. 3. On January 1, 2020, The Nutty Professor Corp. (TNPC) sold $7,000,000 of three-year, 9% bonds priced to yield 7%. Interest is payable on June 30 and December 31 each year. 1. Here Today Ltd. (HTL) issued $4,000,000 in stripped (zero-coupon) bonds that mature in 12 years. The market rate of interest for bonds of a similar nature is 1.2% compounded monthly. Five and one-half years after issue, when the market rate was 3.6%, HTL repurchased $1,600,000 of the bonds on the open market. HTL accrues interest monthly. Bonds are carried at amortized cost. 2. Two Plus Two Accountants sold $6,000,000 of ten-year bonds that pay the then-current market rate of interest of 7% annually on December 31. The bonds are dated January 1, 2018, but were not issued until February 1, 2018. Two Plus Two's year-end is December 31. Two Plus Two has adopted a policy of crediting interest expense for the interest accrued up to the date of sale. 3. On January 1, 2020, The Nutty Professor Corp. (TNPC) sold $7,000,000 of three-year, 9% bonds priced to yield 7%. Interest is payable on June 30 and December 31 each year