Excellent Corporation issued $100,000,000 face value 9 percent 7 year bonds on 1/1/2021. The bonds pay interest semiannually and were sold to yield 7.5 percent. The bonds were purchased by Superior Company. Both companies use the effective interest method for amortization.

a) What is the issuance price of the bonds? ___________________

b) Prepare the entry that Excellent will make to record the issuance of the bonds.

c) Prepare the entry that Excellent will make to record the first interest payment.

d) Prepare the entry that Excellent will make to record the second interest payment.

e) Prepare the entry that Superior will make to record the purchase of the bonds.

f) Prepare the entry that Superior will make to record the first interest payment.

g) Prepare the entry that Superior will make to record the second interest payment.

h) Record the entry that Superior will make to record the retirement of the bond at its maturity date.