I did not understand how calculate this exercise, please help me on this. See attached the file.

Solution-1 PV of Principal PV Of interest Selling price $ $ $ 68,056 579,282 647,338 Solution-2 Bond Issuance Cash Discount on Bond Bond Pay $647,338 $52,662 $700,000 Journal EntryDate 1 Account Titles & Explanation Cash Discount on Bond Bond Payable Debit $647,338 $52,662 Credit $700,000 Semiannual interest payment and discount amortization on June 30, 2014 Net Balance = Bond Payable - Discount on Bond Net Balance = $700,000 - $52,662 Net Balance = $647,338 Interest = $700,000*11%/2 = $38,500 Interest Expense = $647,338*6% = $38,840.28 Discount on Bond (Amortization) = $38,840.28 - $38,500 Discount on Bond (Amortization) = $340.28 Journal EntryDate 1 Account Titles & Explanation Interest Expense Discount on Bond Cash Debit $38,840.28 Semiannual interest payment and discount amortization on December 31, 2014 Journal Entry- Credit $340.28 $38,500 Date 1 Account Titles & Explanation Interest Expense Discount on Bond Cash Debit $38,860.70 Credit $360.70 $38,500 Amortization of discount 0n bond payable Interest Payment Date 30-Jun-14 31-Dec-14 (A) Interest Paid (5.5% of Face Amount) 38500 38500 (B) Interest Expense $38,840.28 $38,860.70 C Discount Amortization (B-A) $340.28 $360.70 0.0972221877 15.0462968715 38500 (D) Unamortization Discount (D-C) $52,662 $52,321.72 $51,961.02 (E) Bond Carrying Amount ($700,000-D) $647,338 $647,678.28 $648,038.98 Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2014, Trueman Corporation issued $300,000 of 20-year, 11% bonds for $277,431, yielding a market (a) Confirm the bond issue price. Present value of principal repayment =$Answer Present value of interest payments =$Answer Selling price of bonds =$ 647,338 (b) Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest paymen Transaction 1 2 3 Revenue Answer Answer Answer Cash Asset Answer Answer Answer Income Statement - + Expenses Answer Answer Answer Noncash assets Answer Answer Answer Equal Equal Net Income Answer Answer Answer Liabilities Answer Answer Answer + 277,431, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. emiannual interest payment and discount amortization on June 30, 2014, and (3) semiannual interest payment and discount am Earned Capital Answer Answer Answer December 31. erest payment and discount amortization on December 31, 2014. (Round answers to the nearest whole number.)