On July 1, 2009, Global Satellites Corp. issued $1.2 million of 10-year, 7% bonds to yield a market interest rate of 6%. The bonds pay semi-annual interest on July 1 and January 1. Global has a December 31 year end.

a) Calculate the present value (issue price) of the bonds on July 1.

b) Record the issue of the bonds on July 1.

c) Prepare an amortization table through December 31, 2010 (three interest periods) for this bond issue. Round all calculations to the nearest dollar.

d) Show the balance sheet presentation of the liabilities at December 31, 2010.