Golden Arches wants to expand their business and venture into the fast food industry. Golden Arches plans to raise the capital by issuing $500,000 of 5.5%, seven-year bonds on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The company receives $501,008 when the bonds are issued.
Record the following transactions. Include dates and round to the nearest dollar. Omit explanations.
a.	Cash received from the bond issue.
b.	Semiannual bond interest payments for 2019. Amortize the premium or discount using the straight-line amortization method.
c.	Retirement of bond at maturity on December 31, 2026, assuming the last interest payment has already been recorded.

A corporation issues $1,500,000 of 3%, 5-year bonds, interest payable semiannually. At the time the bonds are issued, the market rate is 6%. Determine the present value of the bonds at issuance using the present value table below. Show computations in good form.  

 
PV of Principal:

 
PV of annuity:

 
PV of Bond Payable =