BONDS 3 Obvious Company Inc., issued its Option A bond on January 1, 2014 The bond face value is $500,000 and the coupon interest rate is 88 Interest is paid semi-annually on June 30 and December 31. The bond matures in 15 years. The market interest rate is 12 percent. Table Values are as tollows: Present Value of $1 c31 periods at 8% 25 periods at 128 30 periods at 4 30 periods at 6% 0.31524 0.18270 0.30832 0.17411 Present Value of of an Ordinary Annuity of $1 8.55948 6.81086 17.29203 13.76483 periods at 8% periods at 12% 30 periods at 4% 30 periods at 6% a Calculate the selling price of the bond in dollars. Show your work. (10 points) b Calculate the selling price of the bond as a percentage. Show your work. (3 points) pare the Journal entry to record the bond issue sale. (2 points) Prepare the bond amortization schedule bond for years 2014, 2015 and 2016 using the effective interest method (25 points) e Prepare all journal entries to record the interest expense for year 2015. (4 points) On January 1, 2016 Obvious retired 75% of the bond at 105 Calculate the gain or loss at retirement (4 points) Prepare the journal entry to record the bond retirement. (2 points)