On March 1, 2014, Oaken Furniture Co. issued $700,000 of 10 percent bonds to yield 8 percent. Interest is payable semiannually on February 28 and August 31. The bonds mature in ten years. Oaken Furniture Co. is a calendar-year corporation (1) Determine the issue price of the bonds. Show your computations. (2) Prepare an amortization table through the first two interest periods using the effective-interest method. Prepare the journal entries to record bond-related transactions as of the following (3) dates (a) March 1, 2014 (b) August 31,2014 (c) December 31, 2014 (d) February 28, 2015 ANS: Calculation of bond sale price : i -48 n-20 Present value of the face amount ($700,000 x .4564) Present value of the interest ($35,000 x 13.5903) $319,480 475, 661 $795,141 Amortization table: Carrying Value Interest Amortization Interest Payment Date Journal entries