Randy Corp. issued $200,000 of 7.6% (payable each 28 February and 31 August), 4-year bonds. The bonds were dated 1 March 20X4, and mature on 28 February 20X8. The bonds were issued (to yield 8%) on 30 September 20X4, for appropriate proceeds plus accrued interest. The accounting period ends on 31 December.

Required:
1. Calculate the present value of the bond first assuming that it was issued on an interest date, 1 March 20X4.
2. Prepare an amortization schedule using the effective interest method of amortization.
3. Calculate the proceeds of the bond reflecting the fact that it was actually issued on 30 September 20X4. Also calculate the accrued interest.
4. Give entries from the 30 September 20X4 date of issuance through 28 February 20X5. Base amortization on (2) above. Credit the accrued interest collected on 30 September 20X4 to interest payable in the initial journal entry.