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Issue bonds payable at a discount and amortize bonds using the effective$-$interest method

On March $31,2025,$ Pearce Corporation issued bonds payable with characteristics given below. The bonds pay interest semiannually. Pearce Corporation's year$-$end is March $31.$

$\backslash$table$[[$Bonds payable issued,$580,000],[$Maturity $($years$),10],[$Stated interest rate,$6\%],[$Market interest rate,$10\%]]$

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.

Requirements

$1$ Using the PV function in Excel, calculate the issue price of the bonds.

a$.$ Note that the PMT and FV agruments of the PV function are expected as negative values. Use a value of O for the Type argument of the PV function.

$2$ Prepare an effective$-$interest amortization table for the bonds through the first three interest payments.

a$.$ Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.

b$.$ Use cell references from prior calculations, if applicable.

$3$ Journalize Pearce Corporation's issuance of the bonds on March $31,2025,$ and payment of the first semiannual interest amount and amortization of the bond discount on September $30,2025.$

a$.$ Explanations are not required.

b$.$ Check your spelling carefully and do not abbreviate.

c$.$ Record debits first, then credits. Exclude explanations from journal entries.

d$.$ Use cell references from prior calculations, if applicable.

$($second excel page$)$

A

Using the PV function in Excel, calculate the issue price of the bonds.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)$

Issue price

$2.$ Prepare an effective$-$interest amortization table for the bonds through the first three interest payments.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)$

$\backslash$table$[[\backslash$table$[[$Semiannual$],[$Interest Date$]],$Interest Payment,Interest Expense,$\backslash$table$[[$Discount$],[$Amortization$]],\backslash$table$[[$Discount Account$],[$Balance$]],\backslash$table$[[$Bond Carrying$],[$Amount$]]],[$Mar$.31,2025,,,,,],[$Sep$.30,2025,,,,,],[$Mar$.31,2026,,,,,],[$Sep$.30,2026,,,,,]]$

Journalize Pearce Corporation's issuance of the bonds on March $31,2025,$ and payment of the first semiannual interest amount and amortization of the bond discount on September $30,2025.$

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)$

$\backslash$table$[[$Date$,$Accounts,Debit,Credit$],[$Mar$.31,2025,,,],[,,,],[,,,],[,,,],[$Sep$.30,2025,,,],[,,,]].$ PLEASE USE CORRECT EXCEL CELLS!!