On January 1, 2017, SDNOB Company issues 16%, $4,000,000 4-year bonds and the bonds pay interest quarterly on Mar 31, Jun 30, Sep 30, and Dec 31 each year. The prevailing market interest rate at the date of issue is 12%. Use the Effective Interest Rate method of amortization REQUIRED: 1. Calculate the price of the bonds at the issue date Principal Coupon Payment Future Value $ 4,000,000.00 $ 160,000.00 Present Value Factor 0.6232 12 5611 Present Value $ 2,492,800.00 $ 2,009,776.00 Price of Bonds 2. Prepare a partial amortization table only for the first 21 years using the table given below B D E F 1 DATE INTEREST PAID INTEREST AMORTIZED UNAMORTIZED CARRYING VALUE EXPENSE AMOUNT BALANCE OF BONDS 2 1/1/2017 3 3/31/2017 4 6/30/2017 5 9/30/2017 6 12/31/2017 7 3/31/2018 8 6/30/2018 9 9/30/2018 10 12/31/2018 11 3/31/2019 MacBook Air BO 883 21 DO . ) @ 2 $ 4 UX C 9 TI 3 7 8 o 0 Q W R Y U O P E D S F G H J L 3. Prepare journal entries to record the following: (a) Payment of Interest on June 30, 2018 (b) Due to high interest rates in 2019, assume that the company retires the bonds on 6/30/2019 at 93. View transaction list Journal entry worksheet 1 2 (a) Payment of Interest on June 30, 2018 Note: Enter debits before credits B D A S.No/Date June 30, 2018 Account Title 1 Debit Credit 2 4 5 6 MacBook Air ** 80 888 pa { DO DI PE 2 $ 4 3 % 5 6 & 7 +00 C 9 nterest rates in 2019, assume that the company retires the bonds on View transaction list Journal entry worksheet