On July 2, 2018, Corso Inc. purchased $570,000 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 93 (this means 93% of maturity value).

1) Calculate the present value (issue price) of the bonds on July 2, 2018. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 5,250.)

Present Value of the Bonds

$enter the present value of the bonds in dollars rounded to 0 decimal places

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.

Date	Account Titles and Explanation	Debit	Credit
2018
July 2	enter an account title for the journal entry on July 2	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 2	enter a debit amount	enter a credit amount
Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
2019
Jan. 1	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
July 1	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount

Part 3

For Bere, the investee (issuer), 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 issue of the bonds on July 2, 2018,
2.		the accrual of interest on December 31, 2018,
3.		the payment of interest on January 1, 2019, and
4.		the payment of interest on July 1, 2019.

Date	Account Titles and Explanation	Debit	Credit
2018
July 2	enter an account title for the journal entry on July 2	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 2	enter a debit amount	enter a credit amount
Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
2019
Jan. 1	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
July 1	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on July 1