Yates Copmany issues $400,000, 8%, 10 year bonds on January 1, 2014. Interest is payable semiannually on July 1 and January 1. Yates uses the effect interest method of amortization and has a calendar year end. The market rate of interest at the time of the bond is issued was 7%.

Use EXCEL to prepare an amortization shcedule that shows the scale of the bonds and the calculation of interest expenses for the life of the bonds. Use the PV function to calculate for how much bonds were issued. (Please make sure to show proof of calculations in each cell when I click on the cell.)

Underneath the schedule, prepare the journal entries that would have been made when the bonds were sold and would have been made at the first two interest payment periods. Also, prepare the journal entry that they would have made when the bonds were retired.

Please show the calculations in the cells so I am able to put it into excel!