National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $850,000 on January 1, 2018. The bonds mature on December 31, 2021 (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, 2018. 2. Prepare the journal entry to record their issuance by National on January 1, 2018. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2018. 5. Prepare the appropriate journal entries at maturity on December 31, 2021.

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Required 1 Required 2Required 3 Required 4 Determine the price of the bonds at January 1, 2018. (Ra Table values are based on: Cash Flow Interest Principal Amount Present Value Price of bonds Required 1Required 2 Required 3Required 4 Required 5 Prepare the journal entry to record their issuance by National on January 1, 2018. (If no entry is required for a transaction/event select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the issuance of the bonds on January 1, 2018. Note: Enter debits before credits. Date Debit General Journal Credit January 01, 2018 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2Required 3 Required 4 Required 5 Prepare an amortization schedule that determines interest at the effective rate each period. (Round final answers to the nearest whole dollar.) Semiannual Discount Carrying Amortization Cash Interest Bond Interest Interest Value Expense Period-End 01/01/2018 06/30/2018 12/31/2018 06/30/2019 12/31/2019 12/31/2020 06/30/2021 12/31/2021 Total Required 1 Required 2 Required 3Required 4 Required 5 Prepare the journal entry to record interest on June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the interest expense on June 30, 2018. Note: Enter debits before credits Debit Date General Journal Credit June 30, 2018 1 Record the interest expense on December 31, 2021 Record the retirement of the bond at maturity or December 31, 2021. 2