Houston Co. issues $100 million in bonds on January 1, 2017 to expire in 6 years. Interest is paid semi-annually on June 30 and December 31. The coupon (stated) rate and the yield are given below. Dallas Inc. purchased $1 million of the bonds (face value). Dallas Inc. classifies the bonds as available for sale.

Stated Coupon Rate= 4.5% Market Yield Rate= 4%

a.) Calculate the price and prepare the amortization table the $100 million bonds issued by Houston Co.

b.) Prepare the journal entry at issuance for Houston Co.

c.) Prepare the two interest expense entries for 2017 for Houston Co.

d.) Prepare the amortization table for the $1 million bonds purchased by Dallas Inc.

e.) Prepare the journal entry for purchase of the bonds by Dallas Inc. at the issue price.

f.) Prepare the two journal entries for the receipt of interest revenue by Dallas Inc.

g.) Assuming that the market price of the bonds is 101 on December 31, 2017, prepare the necessary journal for Dallas Inc.