INSTRUCTIONS -
Apollo Corporation issued $560,000 of 7%, 12-year bonds payable on March 31, 2016. The market interest rate at the date of issuance was 10%, and the Apollo Corporation bonds pay interest semiannually. Apollo Corporation's year-end is March 31.
Calculate the issue price of the bonds using the PV function in Microsoft Excel.
Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar.
Record Apollo Corporation's issuance of the bonds on March 31, 2016, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2016.