OnFebruary1, 20x1,BroncosCompany issued9.75% bonds with a face amount of $20 million. The bonds mature in 5 years. For bonds of similar risk and maturity, the market yield is 11.5%. Interest is paid semiannually onJuly 31andJanuary31. Broncosis a calendar-year corporation.

1)Determine the price of the bondsonFebruary1, 20x1using the Excel.

2)Prepare the journal entry to record the bond issuance onFebruary1, 20x1.

3)Prepare an amortization tablefor 5 yearsusing the effective interest method.

4)Prepare the journal entries (using the effective interest method) onJuly31, 20x1(1stpayment).

5)Prepare the journal entry (using the effective interest method) on December 31, 20x1 (adjusting entry, no cash payment!)

6)What would be the journal entry if all bonds are retired at 102.5onAugust1, 20x2right after the third payment.Prepare the journal entry for the bond retirement.