Colorado Sports Ltd. is authorized to issue $5,000,000 of 4%, 10-year bonds payable. On December 31, 2014, when the market interest rate is 4.5%, the company issues $3,200,000 of the bonds. Colorado Sports amortizes bond discount by the effective-interest method. Te semiannual interest dates are June 30 and December 31.

Requirements
1. Use the PV function in Excel to calculate the issue price of the bonds.
2. Using Exhibit 9-4 as a model, prepare a bond amortization table for the term of the bonds.
3. Record issuance of the bonds payable on December 31, 2014; the first semiannual interest payment on June 30, 2015; and the second payment on December 31, 2015.