LONG TERM LIABILTIES Example 1: Kansas Corporation issued $500,000 of 6%, 3-year bonds dated 1/1N1. The bonds pay interest annually on December 31. The market rate of interest on the date of sale was 8%. Present Value Factors PV factor for 3 periods at 8% = 0.79383 PVA factor for 3 periods at 8% = 2.57710 PV factor for 3 periods at 6% = 0.83962 PVA factor for 3 periods at 6% = 2.67301 Future Value Factors FV factor for 3 periods at 8% = 1.25971 *FVA factor for 3 periods at 8% = 3.24640 *FV factor for 3 periods at 6% = 1.19102 FVA factor for 3 periods at 6% = 3.18360 = Date Cash Payment Interest Expense Discount Amortization Discount Balance Amount Owed Issuance (1/1/41) End of Year 1 30.000 2000 End of Year 2 End of Year 3 500 Determine the market price of this bond and enter it into the correct box in the amortization table above. Then, fill in the amortization table and prepare all entries necessary during the life of this bond