Reporting Financial Statement Effects of Bond Transactions $($FSET$)$

On January $1,$ McKeown, Inc., issued $$315,000$ of $8\%,9-$year bonds for $$278,178,$ yielding a market $($ yield$)$ rate of $10\%.$ Semiannual interest is payable on June $30$ and December $31$ of each year.

a$.$ Show computations to confirm the bond issue price.

$$ Note: Round your answers to the nearest whole dollar.

AmountPresent value of principal repaymentAnswer $1$Present value of interest paymentsAnswer $2$Selling price of bonds

b$.$ Record the bond issuance, semiannual interest payment, and discount amortization on June $30,$ and semiannual interest payment and discount amortization on December $31,$ using the financial statement effects template. Use the effective interest rate method.

$$ Note:$$ Use negative signs with your answers, when appropriate.

$$ Note:$$Select $"$N$/$A$"$ as your answer if a part of the accounting equation is not affected.

$$ Note: Round your answers to the nearest whole dollar.

Balance SheetIncome StatementCashNoncashContraContrib.EarnedNetTransactionAsset$+$Assets$=$Liabilities$+$Liability$+$Capital$+$CapitalRevenue$-$Expenses$=$IncomeJan. $1$: Bond issuance.Answer $3$Answer $4$Answer $5$Answer $6$Answer $7$Answer $8$Answer $9$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $10$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $11$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $12$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $13$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AJun$.30$: Interest payment.Answer $14$Answer $15$Answer $16$Answer $17$Answer $18$Answer $19$Answer $20$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $21$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $22$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $23$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $24$Bonds payableBond discountCashInterest expenseRetained earningsN$/$ADec$.31$: Interest payment.Answer $25$Answer $26$Answer $27$Answer $28$Answer $29$Answer $30$Answer $31$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $32$Bonds payableBond discountCashInterest expenseRetained earningsN$/$AAnswer $33$Bonds payableBond discountCashInterest expenseRetained earningsN$/$A