Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Banek Inc. issued $560,000 of 8%, nineyear bonds for $494,538, which implies a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show Excel inputs to confirm the bond issue price. Note: Round your answer to two decimal places.

rate =	Answer
nper =	Answer
pmt =	Answer
FV =	Answer
Answer =	Answer

b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and discount amortization on June 30 of the current year, and (3) semiannual interest payment and discount amortization on December 31 of the current year. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your answers to the nearest whole dollar.

	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues		Expenses	=	Net Income
1.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A
2.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A
3.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A	AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A		AnswerAccounts payableCashGain on bond retirementInterest expenseInterest revenueLong term debtLoss on bond retirementRetained earningsN/A