On March 1 2012, Pyne Furniture Co. issued $700,000 of 10% bonds to yield 8%. Interest is payable semiannually on February 28 and August 31. The bonds mature in 10 years. Pyne is a calendar-year corporation.

Required:

1) Determine the issue price of the bonds.

2) Prepare an amortization table through the first 5 years.

3) Prepare the journal entries to record bond-related transactions as of the following dates:

(a) March 2012 (b) August 31, 2012 (c) December 31, 2012 (d) February 28, 2013