Question 3: (20 points)

On January 1, 2023, Manson Corporation issued $3-million 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Manson has a December 31, year-end. Presented below is a partial amortization table:

Semi Annual Interest Period	Interest payment	Interest expense	Amortization	Bond Amortized Cost
Jan 1, 2023				[1]
July 1, 2023	$75,000	[2]	$10,095	3,235,177
Jan 1, 2024	[3]	64,704	10,296	3,224,881
July 1, 2024	75,000	64,498	10,502	3,214,379
Jan 1, 2024	75,000	64,288	[4]	[5]
July 1, 2024	75,000	64,073	10,927	3,192,740
Jan 1, 2025	75,000	63,855	11,145	3,181,595

Required:

Set up a table in MS Excel with all relevant information. Use the table to answer the following questions in MS Excel. Use Excel formulas to support your calculation whenever possible

1. Were the bonds issued at a discount or premium? How do you know?
2. What is the face value of the bonds?
3. What is the contractual rate of interest?
4. Calculate the missing amounts for items [1] through [5] in the amortization table
5. What was the market interest rate when the bonds were issued?
6. Prepare the journal entry to record the issue the bonds on January 1, 2023
7. Prepare the journal entry to record the first interest payment on July 1, 2023
8. Prepare the journal entry to record the accrual of interest on December 31, 2023
1. What amounts would be reported as current and as noncurrent liabilities on Mansons December 31, 2023 balance sheet?