Schaffer

Corporation issued

$500,000

of

5%,

10-year

bonds payable on March 31,

2022.

The market interest rate at the date of issuance was

8%,

and the bonds pay interest semiannually.

Schaffer

Corporation's year-end is March 31.Read the requirements

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1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)

The issue price of the bonds is

2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar.

				Discount	Bond
Semiannual	Interest	Interest	Discount	Account	Carrying
Interest Date	Payment	Expense	Amortization	Balance	Amount
Mar 31, 2022

Sep 30, 2022

Mar 31, 2023

Sep 30, 2023

3. Record

Schaffer

Corporation's issuance of the bonds on March 31,

2022,

and payment of the first semiannual interest amount and amortization of the bond discount on September 30,

2022.

(Record debits first, then credits. Exclude explanations from any journal entries.)Start by recording the issuance of bonds on March 31,

2022.

Journal Entry

Date

Accounts

Debit

Credit

Mar

31

Cash

Bonds Payable

Premium on Bonds Payable

Now record the payment of the first semiannual interest amount and amortization of the bond discount on September 30,

2022.

Journal Entry

Date

Accounts

Debit

Credit

Sep

30

Interest Expense

Premium on Bonds Payable

Cash

1.	Using the PV function in Excel, calculate the issue price of the bonds.
2.	Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar.
3.	Record Schaffer Corporation's issuance of the bonds on March 31, 2022, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2022. Explanations are not required.