On January 1, a company issued $710,000 of 20-year, 8.0% bonds for $644,674, yielding a market rate of 9.0%. Interest is payable semiannually on June 30 and December 31.

Part 1 Confirm the bond issue price. (Round final answer to the nearest dollar.)

Present value of interest payments	Question Blank 1 of 14
Present value of bond principal	Question Blank 2 of 14
Issue price	$644,674

Part 2 Show the financial statement effects of the [i] bond issuance, [ii] first interest payment (on June 30), and [iii] second interest payment (on December 31). If an item is not impacted, select 'no net change.'

	Balance Sheet		Income Statement
Transaction	Assets	=	Liabilities	+	Equity		Net Income
[i] Bond issuance	Question Blank 3 of 14		Question Blank 4 of 14		Question Blank 5 of 14		Question Blank 6 of 14
[ii] First interest payment	Question Blank 7 of 14		Question Blank 8 of 14		Question Blank 9 of 14		Question Blank 10 of 14
[iii] Second interest payment	Question Blank 11 of 14		Question Blank 12 of 14		Question Blank 13 of 14		Question Blank 14 of 14