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Obviously Corporation Inc., 18 considering the sale of Option A $500,000 bond issue. The bond pays semiannual interest of $25,000 and is due in 10 years. Option A bond issue date is January 1, 2015. Interest payment dates are June 30, and December 31, The bonds are sold to yield 12. Table Values are as follows: Present value of 1 for 10 periods at 108 Present value of 1 for 10 periods at 124 Present value of 1 for 20 periods at 5% Present value of 1 for 20 periods at 6) Present value of annuity for 10 periods at 10 Present value of annuity for 10 periods at 12 Present value of annuity for 20 periods at 5........... Present value of annuity for 20 periods at 6t...... Calculate the selling price of Option A bond issue in dollars. Show your work. 0.38554 0.32192 0.37689 0.31180 6.14457 5.65022 12.46221 11.46992 ... Interest Principal 25,000 500,000 11.46992 0.31180 Selling Price 286748 255900 442648 Calculate the selling price of Option A bond issue as a percentage. Show your work. 0.885296 - 100 88.53 Prepare the journal entry to record the bond issue. Cash Discount on Bond Payable Bond Payable 442648 57352 500000 Prepare the amortization schedules for the bond issue for years 2015 and 2016 using the effective interest method. Date Interest Paid Interest Expense Discount Ammortized Value 1-Jan-15 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 25000 25000 25000 25000 26559 26652 26752 26857 1559 1652 1752 1857 442648 444207 445859 447611 449468 Prepare journal entries to record the interest expense for calendar year 2016. On January 1, 2017 Obvious retired 60% of the bond @ 90. Calculate the gain or loss on the retirement. Prepare the journal to record the bond retirement

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