On January 1, 2015, the Dubose Capital Partners, a U.S. GAAP reporter, issued $750,000 par value, 10 % six-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2015. The market rate of interest on the date of the bond issue was 2%

Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.)

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The issue price of the debt is $

.

Requirement b. Prepare the amortization table for the bond issue through January 1, 2018 assuming that Dubose uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.)

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	Cash	Effective	Discount/Premium	Carrying
Date	Interest	Interest	Amortized	Value
January 1, 2015
July 1, 2015
January 1, 2016
July 1, 2016
January 1, 2017
July 1, 2017
January 1, 2018

Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume the company uses a premium or discount account, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous calculations.)

Begin by recording the issuance of the bonds payable.

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Account	January 1, 2015

Record the first semiannual interest payment.

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Account	July 1, 2015

Prepare the journal entry to record payment of the bonds at maturity. (Assume that any rounding differences have been adjusted for.)

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Account	January 1, 2020