Please help particularly with part C

1. Analyzing and Reporting Financial Statement Effects of Premium Bond Transactions

Assume that on January 1, Comcast issues $500,000 of 5-year, 10% coupon bonds payable, yielding an effective annual interest rate of 8%. Interest is payable semiannually on June 30 and December 31.

1. Compute the issue price, bond premium, and the periodic coupon interest. Periodic coupon interest = 25,000, price of bond = $540,554.48

2. Prepare an amortization table for the bonds for the five years.

Amortization table for the premium bonds for the five years

	Interest	Coupon	Premium	Premium	Bond
	Expense	Interest	Amortization	Balance	Payable, Net
0				$40,554	$540,554
1	$25,000	$21,622.18	$3,377.82		$537,176.66
2	$25,000	$21,487.07	$3,512.93		$533,663.72
3	$25,000	$21,346.55	$3,653.45		$530,010.27
4	$25,000	$21,200.41	$3,799.59		$526,210.68
5	$25,000	$21,048.43	$3,951.57		$522,259.11
6	$25,000	$20,890.36	$4,109.64		$518,149.48
7	$25,000	$20,725.98	$4,274.02		$513,875.46
8	$25,000	$20,555.02	$4,444.98		$509,430.47
9	$25,000	$20,377.22	$4,622.78		$504,807.69
10	$25,000	$20,192.31	$4,807.69		$500,000.00
Total

3. Using +/-, complete Comcasts financial statement effects template

a. on bond issuance.

LTD			Cash

Bonds payable, face	.
Add bond premium	.
Bonds payable, net	.

b. on Jun. 30 of the 1st year.

Interest expense in I/S			Retained earnings in B/S Cash
Bond Payable in B/S			Cash in B/S

c. semiannual interest payment and premium amortization on Dec. 31 of the 1st year.

Interest expense in I/S			Retained earnings in B/S Cash
Bond Payable in B/S			Cash in B/S