On January $1,2023,$ Indigo Corporation purchased a newly issued $$1,450,000$ bond. The bond matured on December $31,2025,$ and paid interest at $6\%$ every June $30$ and December $31.$ The market interest rate was $8\%.$ Indigo's fiscal year$-$end is October $31,$ and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model.

$($a$)$

Calculate the price paid for the bond using a financial calculator or Excel functions. $($Round answers to $2$ decimal places, eg$.52\mathrm{.}75.)$

PV $

Prepare an amortization schedule for the bond. $($Round answers to $2$ decimal places, eg$.52\mathrm{.}75.)$

Date

Cash

Received

Jan. $1,2023$

June $30,2023$

Dec. $31,2023$

June $30,2024$

Dec. $31,2024$

June $30,2025$

Dec. $31,2025$

$($c$)$

Prepare the journal entries on the books of Indigo Corporation for each of the following dates. $($Round answers to $2$ decimal places, e$8.52\mathrm{.}75.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.$)$

January $1,2023$

June $30,2023$

October $31,2023$

December $31,2023$

December $31,2025($two entries$)$ one for interest and one for maturity of bond

Date

Account Titles and Explanation

Debit

Credit