When a company issued $8\%$ bonds on January $1,$ Year $1,$ with a face amount of $$620,000,$ the market yield for bonds of similar risk and maturity was $11\%.$ The bonds mature December $31,$ Year $4(4$ years$).$ Interest is paid semiannually on June $30$ and December $31.$

Required:

Determine the price of the bonds at January $1,$ Year $1.$

Prepare the journal entry to record their issuance by the company on January $1,$ Year $1.$

Prepare an amortization schedule that determines interest at the effective rate each period.

Prepare the journal entry to record interest on June $30,$ Year $1.$

What is the amount related to the bonds that the company will report in its balance sheet at December $31,$ Year $1?$

What is the amount related to the bonds that the company will report in its income statement for the year ended December $31,$ Year $1?($Ignore income taxes.$)$

Prepare the appropriate journal entries at maturity on December $31,$ Year $4.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$