26A. Learning Objective 2: Isue bonds payable (discount); record interest payments and the related bond amortization using the effective-interest method) Hadley Ltd. is authorized to issue 55, 000,000 of 4%, 10-year bonds payable. On December 31, 2014, when the market interest te is 5%, the company issues $4,000,000 of the bonds. Hadley Ltd. amortizes bond discount the effective-interest method. The 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 o n December 31, 2015 E9-27A. (Learning Objective 2: Isue bonds payable (premium); record interest payment and the related bond amortization using the effective-interest method) On June 30, 2014, the market interest rate is 3.5%. First Base Sports Ltd. issues $4,000,000 of 4496, 20-year bonds payable. The bonds pay interest on June 30 and December 31. First Base Sports Ltd. amortizes bond premium by the effective-interest method. Requirements 1. Use the PV function in Excel to calculate the issue price of the bonds. 2. Using Exhibit 9-7 as a model, prepare a bond amortization table for the term of the bonds. 3. Record the issuance of bonds payable on June 30, 2014; the payment of interest on Decem- ber 31,2014; and the payment of interest on June 30, 2015