On June 30, 2016, the market interest rate is 6%. Grommet Candies Ltd. issues $2,000,000 of 8%,

Question:

On June 30, 2016, the market interest rate is 6%. Grommet Candies Ltd. issues $2,000,000 of 8%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Grommet Candies Ltd. amortizes bond premium by the effective-interest method.
Requirements
1. Use the PV function in Excel to calculate the issue price of the bonds.
2. Using Exhibit 9-7 as a model, prepare a bond amortization table for the term of the bonds.
3. Record the issuance of bonds payable on June 30, 2016; the payment of interest on December 31, 2016; and the payment of interest on June 30, 2017.