1) Paul Co. begin operations on 1/1/06 by issuing a 3.00 year term (Bullet) bond with a par value of $3,800,000. The bond pays interest semi-annually. On the date of issuance, the annual coupon rate of the bond is 5.250% while the annual required rate of return in the debt capital markets (the discount rate) is 6.5%. Paul assumes that he will earn $1,700,000 in cash revenues and incur cash operating expenses of 47.000% of revenues each 6 month period for the next 3.00 fiscal years. The corporate tax rate is assumed to be 35.00%. I answered number 1 & 2, under is the chart for the amortization. I need help with the third one, the journal entry has to

be in the format provided in the image, Although, the chart has nothing to do with this problem. The chart is based on another problem on Amortization on bond

premium. However, it has to be in the same format. Also, the third image is the t-chart, i have to make it similar to the image.

1. Create an amortization table for the bond.

2. What is the Price of the bond? What is the value of any discount or premium?

3. Provide all journal entries and T-accounts for this transaction over the next 3 years.

* #1 > For Reference

* This is the format of the journal entry i want mine to be > This is the Journal entry for another problem on Bond Premium.

This is the t- table for the image above on premium

Par Value 3,800,000 5250/2 .2625 Coupon Rate 99750 Coupon Payment 65 .0325 Discount Rate 2 Frequency Price of Bond 3,672,400.99 Discount on Bond 127,599.01 Amortization Table Based on Effective Interest Rate Method 1 2 3 4 5 6 Periods Bond Carrying Value Beginning of Pe 3733142.08 3754719.2 3,776,997.57 3,672,400.99 3,672,400.99 3,692,004.02 3712244.15 Coupon payments (3,800,000 X .0254) (Real Effects) 99,750.00 99,750.00 99,750.00 99,750.00 99,750.00 99,750.00 121,327.12 122,028.37 122,752.42 Interest Expense (Bond CV Bop X .0325) (Fake) 119353.0322 119,990.13 120,647.93 127,599.01 147,202.04 188,340.10 209,917.22 232,195.59 Bond Discount Beginning of Period (Bond Disc. EOP P before) (Unamoritizec 127,599.01 167442.1729 20,897.93 21,577.12 22278.37 23,002.42 Amortized Bond Discount Bt (nt-Coupon) 19603.0322 20,240.13 147202.0422 167442.17 188, 340.10 209,917.22 232,195.59 255,198.01 Bond Discount End of Period BH (Bond Disc BOP Amort. Bond Disc) (Unam 127,599,01 Bond Carrying Value End of Period B (Bond CV Beginning) Amoritized Bond Disc) 3,672,400.99 3692,004.02 3 712,244.15 3,733,14 2.08 3,754,719.20 3,776,997.57 3,799,999.99