On March 1,2014,Oaken Furniture Co.issued $700,000 of 10 percent bonds to yield 8 percent.Interest is payable semiannually on February 28 and August 31.The bonds mature in ten years.Oaken Furniture Co.is a calendar-year corporation.
(1)Determine the issue price of the bonds.Show your computations.
(2)Prepare an amortization table through the first two interest periods using the effective-interest method.
(3)Prepare the journal entries to record bond-related transactions as of the following dates:
(a)March 1,2014
(b)August 31,2014
(c)December 31,2014
(d)February 28,2015

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The Answer of On March 1,2014,Oaken Furniture Co.issued $700,000 of 10 percent bonds to yield 8 percent.Interest is payable semiannually on February 28 and August 31.The bonds mature in ten years.Oaken Furniture Co.is a calendar-year corporation.
(1)Determine the issue price of the bonds.Show your computations.
(2)Prepare an amortization table through the first two interest periods using the effective-interest method.
(3)Prepare the journal entries to record bond-related transactions as of the following dates:
(a)March 1,2014
(b)August 31,2014
(c)December 31,2014
(d)February 28,2015