On March 1 20x2, Denver 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. Denver is a calendar-year corporation.

1) Determine the issue price of the bonds using the Excel.

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 1, 20x2 (bond issuance)

(b) August 31, 20x2 (1st payment)

(c) December 31, 20x2 (adjusting entry; no cash payment)