Exercise 4: Bonds payable On January 2, 20x1, Taino Borinquen, Inc. issued $9,000,000 in 10-year Bonds with a yield of 10% per annum and paying interest semi-annually, on June 30 and December 31. The yield on the bonds in the market at the date of issuance was 12%. The yield on the bonds in the market at the date of issuance was 12%. The company records the amortization of the discount or premium in the interest payment periods. Factors included in the present value tables to be considered: PV of $1 for 10 periods at 10% .................................. .386 PV of $1 for 10 periods at 12% .................................. .322 PV of $1 for 20 periods at 5% ..................................... .377 PV of $1 for 20 periods at 6% .................................... .312 PV for a 10-period annuity at 10% ................ 6.145 PV for a 10-period annuity at 12% ................ 5.650 PV for a 20-period annuity at 5% .................. 12.462 PV for a 20-period annuity at 6% .................. 11.470

Instructions: 1. Determine the selling price of the bonds. 2. Prepare the bond issue registration entry. 3. Prepare an amortization report, for the first 5 years. 4. Prepare the discount expense and amortization recording entries, for years 20x1 and 20x2