Markway, Inc., is contemplating selling bonds. The issue is to be composed of 150 bonds, each with a face amount of $2,000.

Required:

1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $20.

2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $30.

3. Calculate how much Markway is able to borrow if each bond is sold at 96 percent of par.

4. Calculate how much Markway is able to borrow if each bond is sold at 105 percent of par.

5. Assume that the bonds are sold for $1,975 each. Prepare the entry to recognize the sale of the 150 bonds.

6. Assume that the bonds are sold for $2,015 each. Prepare the entry to recognize the sale of the 150 bonds.