On March 1, 2021, WWE Company sold 386,000 individual bonds. The bond terms were as follows: 14 years, $1,000 face value, 1.9% coupon rate. The bonds were issued at an annual effective interest rate of 1.3%. Interest is payable semi-annually and the first interest payment date is August 31, 2021. On March 1, 2021, bond issue costs of $461,680 were incurred in preparing and selling the bond issue.

Calculate the selling price of the bond. Prepare an amortization table for the entire bond period. The amortization table should be based on the initial date of issuance and subsequent payment dates. Use the effective-interest method. Create a list of all journal entries required during 2021. Any partial-period allocation of interest expense and applicable discounts or premiums should be done on a monthly basis (e.g., 2 months allocation = 2/6). Show (a snapshot of the relevant line items alone is fine, like in the class lecture notes) how all items would be presented on WWEs balance sheet on the day of the bond issuance (March 1, 2021). Include all calculated amounts. Please be clear about where the line items appear on the balance sheet. You may ignore the cash balance. Show (a snapshot again is fine) how all items would be presented on WWEs income statement and balance sheet for December 31, 2021. Amortization on bond issue costs should be calculated on a straight-line basis. Include all calculated amounts. Please be clear about where the different items appear on the income statement and on the balance sheet. You may ignore cash and retained earnings balances.