National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $550,000 on January 1, 2016. The bonds mature on December 31, 2019 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1.	Determine the price of the bonds at January 1, 2016.

2.	Prepare the journal entry to record their issuance by National on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3 .	Prepare an amortization schedule that determines interest at the effective rate each period. Semiannual Interest Cash Bond Interest Discount Carrying Period End Interest Expense Amort Value 01/01/2016 06/30/2016 12/31/2016 06/30/2017 12//31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019 Total

4.	Prepare the journal entry to record interest on June 30, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

5.	Prepare the appropriate journal entries at maturity on December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)