On July 31, 2013, Cooks Castle Resorts issues a $2,500,000, 10 year, 6.5% Bond with interest payable semiannually on January 31 and July 31 of each of the next ten years. The market interest rate on the date of issuance is 3%. Cooks Castle Resorts uses the effective interest method to amortize bonds (Note: you will need to utilize the present value tables attached).

1.) Calculate the issuance price of the bond using the appropriate present value tables attached.

2.) Prepare the entry to account for the Bond Issuance on July 31, 2013.

3.) Prepare the December 31, 2013 adjusting entry for Cooks Castle Resorts.[Be careful guys take your time - think about what's changed].

4.) Prepare the January 31, 2014 journal entry to account for Cooks Castle Resorts first interest payment.[Be careful].

5.) Prepare the July 31, 2014 journal entry to account for Cooks Castle Resorts second interest payment.[Be careful].