Hadley Ltd. is authorized to issue $3,000,000 of 4%,10-year bonds payable. On December 31, 2016, when the market interest rate is 6%,the company issues $2,400,000 of the bonds.Hadley Ltd. amortizes bond discount by the effective-interest method. The semiannual interest dates are June 30 and December 31.

1. Use the PV function in Excel Superscript to calculate the issue price of the bonds.

2. Prepare a bond amortization table for the first four semiannual interest periods.

3. Record the issuance of bonds payable on December 31, 2016; the payment of interest on December 31, 2016; and the payment of interest on June 30, 2017.