On July 2, 2018, Corso Inc. purchased $ 440,000 of Bere Corp. 4% bonds at a price to yield a market interest rate of 5%. The bonds pay interest semi-annually on July 1 and January 1, and mature on July 1, 2028. Corso plans to hold this investment until it matures. At December 31, 2018, which is the year end for both companies, the bonds were trading at 94 (this means 94% of maturity value).

Part 1: Calculate the present value (issue price) of the bonds on July 2, 2018.

Present Value of the Bonds: $________

Part 2: For Corso, the investor, record. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		the purchase of the bonds on July 2, 2018,
2.		the accrual of interest on December 31, 2018,
3.		the receipt of interest on January 1, 2019, and
4.		the receipt of interest on July 1, 2019.