QUESTION 5. On January 1, 2020, Rush Inc. prepared an amortization schedule for a bond issue. Mr. Martin the CFO, wants to see just how much you know about accounting for bonds, and asks you to answer several questions about the amortization schedule: Date Stated interest Market interest Amortization amount 1/1/20 12/31/20 $600 651 $51 12/31/21 Bond carrying value 59,298 9,349 9.403 9.461 9,523 9,590 600 658 54 12/31/22 600 658 58 12/31/23 600 662 62 12/31/24 667 67 600 600 12/31/25 671 71 9,661 12/31/26 600 676 76 9,737 12/31/27 600 682 82 9,819 12/31/28 600 687 87 9.906 12/31/29 600 694 94 10.000 a. What is the face amount of the bonds? What is the selling price of the bonds? b. Were the bonds sold at a premium or discount or par? If there was a premium or discount, how much is it? C Are the bonds being amortized by straight-line or effective amortization method? d. What is the stated rate of interest? e. What is the market rate of interest? f. What is the journal entry required on 12/31/27 based on this amortization schedule? 9. Why do the market interest amounts increase each year? YOU MUST SHOW LABELED CALCULATIONS ON THE FINAL ANSWERS TO BE GRADED