Assume that Kristi Corporation issued a $10\%,$ $$1,000,000$ bond due in $5$ years on January

$1,$ Year $1.$ The bond was priced to yield $8\%.$ Interest is paid semiannually on June $30$ and

December $31.$

Required:

a$)$ Calculate the issue price for the bond.

b$)$ Prepare an amortization schedule that determines interest expense at the effective rate

for each period.

c$)$ Prepare the journal entry to record the bonds at issuance on January $1,$ Year $1.$

d$)$ Prepare the journal entry to record the first $2$ interest payments.

e$)$ What is the amount that Kristi Corporation will report in its Balance Sheet at

December $31,$ Year $1$ related to the bonds?

f$)$ What is the amount that Kristi Corporation will report in its Income Statement at

December $31,$ Year $1$ related to the bonds?