Winner Ltd. is authorized to issue $ 2 comma 000 comma 000 of 3%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 5%, the company issues $ 1 comma 600 comma 000 of the bonds. Winner amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31.

1.Use the PV function in Excel Superscript to calculate the issue price of the bonds.

2.Prepare a bond amortization table for the first year of the bonds.

3.Record the issuance of the bonds payable on December 31, 2018; the first semiannual interest payment on June 30, 2019; and the second payment on December 31, 2019.