You have been asked to continue your work on the SpringFit Corporation audit. The journal entries for the current year are shown as follows:

Journal Entries, 20Y5

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Jun. 30	Interest Expense		19,397.00
2		Premium on Bonds Payable		3,103.00
3		Cash

Considering the journal entries for both years, answer the following questions.

1.	What is the yearly payment amount required for the note payable? (Assume it is an installment note.)
2.	What is the interest rate on the note payable?
3.	Were the bonds in the entry on Dec. 31 of 20Y5 redeemed at maturity? No
4.	You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Both entries are correct. Why? There is no error.
5.	Why do some bonds sell below face value? None of these answers is correct.