Metro Company purchased $$100,000,10\%,5-$year bonds on January $1,20$x$1$ when the market

yield was $11\mathrm{.}75\%.$ Interest is payable on June $30$ and December $31.$ The market value on December

$31,20$x$1$ was $$90,500$ and all bonds were sold for $$92,000$ on January $1,20$x$2$ before the

scheduled payment was made.

Required:

$1.$ Compute the price of this investment on January $1,20$x$1$ using the Excel.

$2.$ Prepare the amortization schedule for $5$ years.

$3.$ Prepare the journal entry on January $1,20$x$1($investment$).$

$4.$ Prepare the Journal entry for the first interest on June $30,20$x$1$ and second interest on December $31,20$x$1.$

$5.$ Prepare the journal entry for the market value adjustment on December $31,20$x$1$ and sales of bonds

on January $1,20$x$2,$ assuming the bond investment is classified as

$*$Just assume the market value adjustment is recorded on December $31,20$x$1$ after the second interest is received.

$1)$ Held$-$to$-$Maturity

$12/31/$x$1($market value adjustment$)$

$1/1/$x$2($sale$)$

$2)$ Trading Security

$12/31/$x$1($market value adjustment$)$

$1/1/$x$2($sale$)$

$3)$ Available$-$for Sales

$12/31/$x$1($market value adjustment$)$

$1/1/$x$2($sale$)$