On August $31,$ Year $7,$ DEF Company issues a $$1,000,00010-$year $5\%$ bond. The market rate of interest is $5\mathrm{.}5\%.$ The bond quote is $96\mathrm{.}1932.$ The company$$s fiscal year end is July $31.$ The bond pays interest semi$-$annually on February $28,$ and August $31$ each year.

Required:

a$.)$ Prepare a bond amortization table as outlined below for the first $2$ years of the bond.

b$.)$ Record the journal entry for the issuance of the bond $($August $31,$ Year $7)$

c$.)$ Record the journal entry for the first semi$-$annual payment. $($February $28,$ Year $8)$

d$.)$ Record the journal entry for the year end adjustment. $($July $31,$ Year $8)$

e$.)$ Record the journal entry for the second semi$-$annual payment. $($August $31,$ Year $8)$

Bond amortization table

Date Payment Interest expense Discount amortized Carrying value