Saturn Inc. issued $5\%,$ $$100,000$ bonds dated January $1$ of Year $1$ on March $1$ of Year $1$ at $95.$ The bonds pay interest every June $30$ and December $31,$ and mature December $31$ of Year $5.$

Required

a$.$ Prepare an amortization schedule over the term of the bonds using the straight$-$line interest method. Hint: The discount is amortized over the number of months that the bonds are outstanding.

b$.$ Provide journal entries at each of the following dates.

March $1$ of Year $1.$

June $30$ of Year $1.$

c$.$ Compute interest expense reported in the income statement for the six months ended June $30$ of Year $1.$