Problem
On July 1, 2021, Piper, Inc. issued three-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable annually on June 30. The bonds were sold to yield 8%. The company's year-end is December 31.
1. Using the issue price previously calculated; prepare an amortization schedule using the effective-interest method.
2. Prepare journal entries from date of issue through July 1, 2022.