E$7-35.$ LO$3,4$: Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January $1$ of the current year, Banek Inc. issued $$350,000$ of $8\%,$ nine$-$year bonds for $$309,086,$ which implies a market $($yield$)$ rate of $10\%.$ Semiannual interest is payable on June $30$ and December $31$ of each year.

Required:

a$.$ Show computations to confirm the bond issue price.

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

i$)$ bond issuance,

ii$)$ semiannual interest payment and discount amortization on June $30$ of the current year,

iii$)$ semiannual interest payment and discount amortization on December $31$ of the current year