Tagawa Corporation issued $500,000 of 10-year, 5% bonds on January 1, 2012, at a price to yield

Question:

Tagawa issued $500,000 of 10-year, 5% bonds on January 1, 2012, at a price to yield a market interest rate of 6%. Interest is payable semi-annually on July 1 and January 1. Tagawa has a December 31 year end.
Instructions
(a) Calculate the bonds' present value (issue price) on January 1.
(b) Record the issue of the bonds on January 1.
(c) Record the payment of interest on July 1.
(d) Record the accrual of interest on December 31.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...