Caprio Inc. sells $500,000 of 10% bonds on June 1, 2015. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2020. The bonds yield 8%. On October 1, 2016, Caprio buys back $200,000 (face value) of bonds for $210,000 in cash (not including accrued interest which was paid separately also in cash). Provide the following: Show EXCEL FORMULAS

a. The present value of the bond payable is $ ______________________ on June 1, 2015. Round to the nearest dollar.

b. Prepare a well-labeled schedule (with debits/credits shown) for the journal entries through the life of the Bond.

c. Give all journal entries for:

6/1/15

12/1/15

12/31/15

6/1/16

10/1/16 Update

10/1/16 accrued interest payment

10/1/16 redemption