Amortization schedule for bonds. Seward Corporation issues on January 2. Year 1. 8-percent semiannual coupon bonds maturing three years from the date of issue. The coupons, dated for January 1 and July 1 of each year, each promise 4 percent of the face value, 8 percent total for a year. The firm issues the bonds to yield 10 percent, compounded semiannually.

a. What are the issue proceeds received by Seward Corporation?

b. Construct an amortization schedule, similar to that in Exhibit 9.3. for this bond issue.

c. Give the journal entries relating to these bonds for the first year. Seward Corporation uses a calendar year for its accounting period.

d. Assume that on January 2, Year 3, Seward Corporation reacquires $20,000 face value of these bonds lor 102 percent of par and retires them. Give the journal entry to record the retirement.