Please use excel worksheet, format the cells properly and ensure you understand the reasoning behind the figures. YOU MUST SHOW YOUR WORK IN SYSTEMATIC ORDER TO RECEIVE FULL CREDIT 1. FORSHOW DRESS FOR SUCCESS Co. issued a five (5) year $500,000 Bond with coupon rate of 8% on January 1, 2010. Interest is paid quarterly on April 1, July 1, October 1 and January 1. The market interest rate is 12%. (a) Calculate the issue price in dollar and as a percentage. (a) Use the present value tables to calculate the issue price of the bond as an amount (b) Calculate the issue price as a percentage (c) Prepare the amortization schedule for the five years using the straight line method (d) Prepare the amortization schedule for the five years using effective interest rate method (f) Make journal entries to record interest expense for years 2010 to 2015 under the effective interest rate method. (9) Prepare a partial balance sheet as of December 31, 2014 showing both the current and long term liabilities section of the balance sheet using figures from the effective interest rate method. 2. For questions 2 and 3 use calculations from the effective interest rate method. Assume that on 7/1/2011, XYZ Co. retired the outstanding bonds at 106 of face; Prepare the necessary entries to retire the bonds 3. Make the journal entry on the maturity date of the bonds assuming no bonds were redeemed during the life of the bond. B 1. FORSHOW DRESS FOR SUCCESS sold $200,000 of 8% 8 year bonds for face value on May 1, 2014 instead of on January 1, 2014. The Co. pays interest on December 31 each year. a. Prepare the journal entries to record the sale of the bonds on May 1, 2014 b. Prepare the journal entry to record the first annual interest payment on December 31, 2014 c. Show the bond interest expense in T account form on July 1, 2014