n January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $900,000 at 97. Interest is payable annually on January 1. Instructions Prepare the following entries: a. record the issuance of the bonds on 1/1/20 b. first annual interest accrual on 12/31/20 c. amortization, assuming that the company uses straight-line amortization on 12/31/20 d. payment of interest on 1/1/21 e. What is the unamortized balance of the discount account at 1/1/21? f. What is the carrying value of the bond at 1/1/21?

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