Please show work.

2 3 On 1/1/2019 Big Sky Inc., issued $25,000,000, 10%, 3-year bonds, due 12/31/2021. The 5% semi-annual coupon payments are paid on June 30th & Dec 31st. At the time of issue, the stated market rate for similar bond issues was 6%, (i.e., 3% semi-annual.) 4 5 6a Calculate the issue price (present value of the bond proceeds. (round to nearest dollar. (Show and label your work). 7 9 10 11 12 13 14 b) Complete the bond amortization table below. (use EXCEL & round to the nearest dollar) 15 c) Prepare the accounting journal entries for the bond issue on the Journal Entry Sheet. 17 18 19 Cash Unamortized Interest Expense Bond Carrying Value Bond Par (Maturity) Value 20 Date Payment Amortization 21 22 01/01/19 23 24 06/30/19 25 26 12/31/19 27 28 06/30/20 20 30 12/31/20 21 12 06/30/21 13 34 12/31/21 35 36 37 page 4 all 39 40