Microsoft Company sells $500,000 of bonds on January 1 2014. The face value is 10% interest paid twice per year on May 1st and November 1st.  The market rate is 12%.  The bonds are due in 3 1/2 years.   Compute the price of the bonds at the date of issue.   Prepare the journal entry for the date of issue.   Prepare the amortzation schedule for the first two years.

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