1.	Using the PV function in Excel, calculate the issue price of the bonds.
2.	Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar.
3.	Record Halbach Corporation's issuance of the bonds on January 1, 2022, and payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2022. Explanations are not required.

Halbach

Corporation issued

$700,000

of

16%,

10-year

bonds payable on January 1,

2022.

The market interest rate at the date of issuance was

14%,

and the bonds pay interest semiannually (on June 30 and December 31).

Halbach

Corporation's year-end is June 30.Read the requirements

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1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)

The issue price of the bonds is

2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar.

				Premium	Bond
Semiannual	Interest	Interest	Premium	Account	Carrying
Interest Date	Payment	Expense	Amortization	Balance	Amount
Jan 1, 2022

Jun 30, 2022

Dec 31, 2022

Jun 30, 2023

3. Record

Halbach

Corporation's issuance of the bonds on January 1,

2022,

and payment of the first semiannual interest amount and amortization of the bond premium on June 30,

2022.

Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)Start by recording the issuance of bonds on January 1,

2022.

Journal Entry

Date

Accounts

Debit

Credit

Jan

1

Cash

Premium on Bonds Payable

Bonds Payable

Record the payment of the first semiannual interest amount and amortization of the bond premium on June 30,

2022.

Journal Entry

Date

Accounts

Debit

Credit

Jun

30

Interest Expense

Premium on Bonds Payable

Cash