E$7-31.$ LO$3,4$: Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January $1,$ Remington Corp. issued $$500,000$ of $15-$year, $10\%$ bonds payable for $$586,460$ yielding an effective interest rate of $8\%.$ Interest is payable semiannually on June $30$ and December $31.$

Required:

a$.$ Show computations to confirm the issue price of $$586,460.$

b$.$ Indicate the financial statement effects using the template for:

i$)$ bond issuance,

ii$)$ semiannual interest payment and premium amortization on June $30$ of the first year, and

iii$)$ semiannual interest payment and premium amortization on December $31$ of the first year.