The Simpkins II Corporation issued a 5-year $800,000 bond at a coupon rate of 8% on January 1, 2018. Interest is paid semi-annually on June 30 and December 31 of each year. The market yield for bonds of similar risk and maturity is 10%.

Required:

A. Is this a premium or discount bond?

B. Determine the price of the bond (using Present Value Tables)

C. Determine the total amount of interest expense for this bond at maturity (prior to making the table)

D. Prepare the complete Bond Amortization Table for this bond to maturity

E. Prepare the Journal Entries for the date of issuance, first interest payment, and at maturity (make certain to include the date for each entry)