Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January $1$ of the current year, Banek Inc. issued $$700,000$ of $8\%,$ nine$-$year bonds for $$618,172$ which implies a market $($yield$)$ rate of $10\%.$ Semiannual interest is payable on June $30$ and December $31$ of each years

a$.$ Show computations to confirm the bond issue price.

Note: Do not use a negative sign.

Note: Round answer to the nearest dollar, if applicable.

b$.$ Prepare a bond amortization schedule for the first year.

Instructions:

Use rounded bond issue price as the starting point of the amoritzation schedule.

Do not round intermediate calculations, if applicable.

Round answer to the nearest dollar, if applicable.

Do not use negative signs with answers.