Please use excel worksheet, format the cells properly and ensure you understand the reasoning behind the figures. YOU MUST SHOW YOUR WORK IN SYSTEMATIC ORDER TO RECEIVE FULL CREDIT 1. FORSHOW DRESS FOR SUCCESS Co. issued a five (5) year $800,000 callable bond on January 1, 2021. The coupon rate is 10% and the market interest rate is 6%. The bond certificate indicates that interest is paid quarterly on April 1, July, 1, October 1 and January 1. Points 1.50% (a) Use the present value tables to calculate the issue price of the bond as an amount $20,000 (6) Calculate the issue price as a percentage (c) Prepare the amortization schedule for the five years using the straight line method (d) Prepare the amortization schedule for the five years using effective interest rate method (e) Make journal entries to record interest expense for 2021 under the straight line method. Record the payment of interest on January 1, 2022 (1) Make journal entries to record interest expense for 2022 under the effective interest rate method. Record the payment of interest on January 1, 2022 (9) Prepare a partial balance sheet as of December 31, 2024 showing both the current and long term liabilities section of the balance sheet using figures from the effective interest rate method. 10 5 10 10 10 10 10 For questions 2 and 3 use calculations from the effective interest rate method. 2. On July 1, 2023 the Co. called and retired half (50%) of the bonds at 102. Make the journal entry to record the retirement of the bonds 10 3. Make the journal entry on the maturity date of the bonds assuming no bonds were redeemed during the life of the bond. 10 1. FORSHOW DRESS FOR SUCCESS sold $200,000 of 8% 8 year bonds for face value on April 1, 2024 instead of on January 1, 2024. The Co. pays interest on January 1 B and July 1 each year. a. Prepare the journal entries to record the sale of the bonds on April 1, 2024 b. Prepare the journal entry to record the first semi-annual interest payment on July 1, 2024 c. Show the bond Interest expense in T account form on July 1, 2024 8 5 2 100 c) 1.Jan 1-Apr 1.Jul 1-Oct 1-Jan 1-Apr 1.Jul 1. Oct 1.Jan + Problem Sheet3 Ready Normal View Sum- Please use excel worksheet, format the cells properly and ensure you understand the reasoning behind the figures. YOU MUST SHOW YOUR WORK IN SYSTEMATIC ORDER TO RECEIVE FULL CREDIT 1. FORSHOW DRESS FOR SUCCESS Co. issued a five (5) year $800,000 callable bond on January 1, 2021. The coupon rate is 10% and the market interest rate is 6%. The bond certificate indicates that interest is paid quarterly on April 1, July, 1, October 1 and January 1. Points 1.50% (a) Use the present value tables to calculate the issue price of the bond as an amount $20,000 (6) Calculate the issue price as a percentage (c) Prepare the amortization schedule for the five years using the straight line method (d) Prepare the amortization schedule for the five years using effective interest rate method (e) Make journal entries to record interest expense for 2021 under the straight line method. Record the payment of interest on January 1, 2022 (1) Make journal entries to record interest expense for 2022 under the effective interest rate method. Record the payment of interest on January 1, 2022 (9) Prepare a partial balance sheet as of December 31, 2024 showing both the current and long term liabilities section of the balance sheet using figures from the effective interest rate method. 10 5 10 10 10 10 10 For questions 2 and 3 use calculations from the effective interest rate method. 2. On July 1, 2023 the Co. called and retired half (50%) of the bonds at 102. Make the journal entry to record the retirement of the bonds 10 3. Make the journal entry on the maturity date of the bonds assuming no bonds were redeemed during the life of the bond. 10 1. FORSHOW DRESS FOR SUCCESS sold $200,000 of 8% 8 year bonds for face value on April 1, 2024 instead of on January 1, 2024. The Co. pays interest on January 1 B and July 1 each year. a. Prepare the journal entries to record the sale of the bonds on April 1, 2024 b. Prepare the journal entry to record the first semi-annual interest payment on July 1, 2024 c. Show the bond Interest expense in T account form on July 1, 2024 8 5 2 100 c) 1.Jan 1-Apr 1.Jul 1-Oct 1-Jan 1-Apr 1.Jul 1. Oct 1.Jan + Problem Sheet3 Ready Normal View Sum