On October 1, 2020, Whitfield Corp

Essay

On October 1, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on on October 1, 2025. Interest is to be paid semi-annually on April 1 and October 1. The bonds were sold to yield 8% effective annual interest. Whitfield has a calendar year end.
Instructions
a) Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use the effective-interest method.

b) Prepare the adjusting entry required for these bonds at December 31, 2021.
c) Calculate the interest expense to be reported in the income statement for the year ended December 31, 2021.