1. Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010, and that interest is paid semi-annually on June 30 and December 31.

A 10-year, 6 percent bond issue; the market interest rate is 12 percent

A 10-year, 12 percent bond issue; the market interest rate is 8 percent

2. Using the information from questions # 1a and 1b above, prepare the amortization schedules and make the entry to record the interest expense, under the effective interest method, for the years 2010, 2011 & 2012.

(NOTE:) PLEASE use an excel sheet to show the formula. After you have it, you can also send a picture showing the procedure. I am asking to do it in an excel sheet because I have to do the mid-term in an excel sheet too. So It will be helpful to see how you do it in excel. THANK YOU.