Bond Amortization

Please show all the steps - how each value is calculated. This is a book based question, Exel CAN NOT BE USED!

Family General Stores Inc. is authorized to issue $500,000 of 7%, 10-year bonds. On July 31, 2017, when the market interest rate is 8%, the company issues $400,000 of the bonds and receives cash of $372,660. Family General amortizes bonds by the effective-interest method. The semi-annual interest dates are January 31 and July 31. Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on July 31, 2017, and the semi-annual interest payments on January 31, 2018, and on July 31, 2018. Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods. (Round the amounts to the nearest dollar.) Family General Stores Inc. Amortization Table Interest Payment (3.5% of Maturity Value) Interest Expense (4.0% of Preceding Bond Carrying Amount) Discount Amortization (B-A) Semi-Annual Interest Date July 31, 2017 Jan 31, 2018 Discount Account Bond Carrying Balance Amount (D-C) ($400,000 - D) $ 27,340'$ 372,660