Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January $1$ of the current year, Banek Inc. issued $$700,000$ of $8\%,$ nine$-$year bonds for $$618,173,$ 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.

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.