Microsoft Company issued a 7% per year semi-annual interest bond to yield 7% per year. The bond is a 12 year bond with a face value of $2,000,000 and pays interest every January 1 and July 1. In addition, bond issue cost were $50,000. The bond is callable after one year at 108. Microsoft uses the effective interest method of amortization. The bond was issued January 1, 2014.(Show all work)

A) Determine the proceeds from the bond.

B) Record the issue of the bond and the bond issue cost. Dr, Cr,

C) Prepare an amortization table through January 1, 2016.

D) Record the necessary accrual entries on December 31, 2015, their year end.