PayPal Inc. sells 6-year bonds on January 1, 2017. The bonds pay interest on Juanary 1 and July 1. Par value of bonds $500,000.00 Stated interest rate is 12% and the bond yield rate is 10%.

1. Calcualte the bond issue price. Use Table 6-2 and 6-4 to get the present value factors. Round to the nearest dollar. PV of the principal, PV of the interest payments and bond issue price.

2. Use Excel formulas to construct the bond discount/premium amortization schedule. Lable the columns properly.

3. Prepare journal entries for the following dates.

1/1/17

7/1/17

12/31/17

1/1/18

TABLE 6-4. PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 i PVF-OA (n) Periods 2% 2%% 3% 4% 98039 97561 97087 96154 1.92742 1.94156 1.91347 1.88609 2.88388 2.85602 2.82861 2.77509 3.80773 3.76197 3.71710 3.62990 4.71346 4.64583 4.57971 4.45182 7.97087 11 9.78685 9.51421 9.25262 8.76048 10.57534 12 10.25776 9.95400 9.38507 10.98319 10.63496 13 11.34837 9.98565 12.10625 14 11 69091 11.29607 10.56312 12.84926 15 12.38138 11.93794 11.11839 13.05500 11.65230 16 13.57771 12.56110 13.71220 17 14.29187 13.16612 12.16567 14.35336 13.75351 18 14.99203 12.65930 19 15.67846 14.97889 14.32380 13.13394 20 16.35143 15.58916 14.87747 13.59033 21 17.01 121 16.18455 15.41502 14.02916 17.65805 15.93692 22 16.76541 14.45112 23 18.29220 17.33211 16.44361 14.85684 15.24696 24 18.91393 17.88499 16.93554 25 19.52346 18.42438 17.41315 15.62208 17.87684 26 20.12104 18.95061 15.98277 27 20.70690 19.46401 18.32703 16.32959 16.66306 28 21.28127 19.96489 18.76411 29 21.84438 20.45355 19.18845 16.98371 22.39646 20.93029 17.29203 30 19.60044 5% 95238 1.85941 2.72325 3.54595 4.32948 7.10782 8.30641 8.86325 9.39357 9.89864 10.37966 10.83777 11.27407 11.68959 12.08532 12.46221 12.82115 13.16300 13.48857 13.79864. 14.09394 14.37519 14.64303 14.89813 15.14107 15.37245 94340 1.83339 2.67301 3.46511 4.21236 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 11.15812 11.46992 11.76408 12.04158 12.30338 12.55036 12.78336 13.00317 13.21053 13.40616 13.59072 13.76483