1) Bonds with a face value of $500,000 are issued at par. Interest rate is 10%. These are 10-year bonds. Interest payment dates are 2-1 and 8-1. Record issuance of bonds.

2) Refer to # 1. Record semiannual interest payment on 8-31.

3) Refer to #1. Record accrued interest on 12-31.

4) Refer to #1. Assume that issuance price is 101. Record issuance of bonds.

5) Refer to #4. Record semiannual interest payment on 8-31.

6) Refer to #4. Record accrued interest and amortization on 12-31.

7) Refer to # 1. Assume bonds are issued at 99. Record issuance of bonds.

8) Refer to # 7. Record semiannual interest payment on 8-31.

9) Refer to #7. Record accrued interest and amortization on 12-31

10) You establish a bond sinking fund for $10,000,000. Make entry.