Randy Corp. issued $$200,000$ of $7\mathrm{.}6\%($payable each $28$ February and $31$ August$),4-$year bonds. The bonds were dated $1$ March $204,$ and mature on $28$ February $208.$ The bonds were issued $($to yield $8\%)$ on $30$ September $204,$ for appropriate proceeds plus accrued interest. The accounting period ends on $31$ December.

Required:

Calculate the present value of the bond first assuming that it was issued on an interest date, $1$ March $204.($Round time value factor to $5$ decimal places. Do not round intermediate calculations.$)$

Present value of the bond

$

$197,307$

Calculate the proceeds of the bond reflecting the fact that it was actually issued on $30$ September $204.$ Also calculate the accrued interest. $($Round your final answers to the nearest whole dollar amount.$)$

$\backslash$table$[[$Proceeds of bond$],[$Accrued interest$]]$

Give entries from the $30$ September $204$ date of issuance through $28$ February $205.$ Base amortization on $(2)$ above. Credit the accrued interest collected on $30$ September $204$ to interest payable in the initial journal entry. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar amount.$)$

$1$ Record the issue of $$200,000$ of $7\mathrm{.}6\%4-$year bonds with an yield of $8\%$ on $30$ September $204$

$2$ Record the interest on $$200,000$ of $7\mathrm{.}6\%4-$year bonds for the period ending $31$ December $204.$

Record the interest payment on $$200,000$ of $7\mathrm{.}6\%4-$year bonds for the period ending $28$ February $205.$

Debit

Credit