Dimensional Media Inc. has a December 31 year-end. It showed the following partial amortization schedules regarding its two bond issues:

Required

Answer the following for each bond issue:

a. Were the bonds issued at a premium and/or discount?

b. Journalize the issuance of bond issue 1 and 2 on September 1, 2021, and May 1, 2020, respectively.

c. What is the contract interest rate for each bond issue?

d. What was the market interest rate at issuance for each bond?

e. Interest of how much is paid how often for each bond issue?

f. What is the term of each bond issue?

g. Show how each of the bonds would appear on the balance sheet at December 31, 2025.

h. Calculate the total bond interest expense that would appear on the income statement for the year ended December 31, 2026.

i. Independent of (a) through (h), assume both bond issues were retired on December 1, 2025, at 101. Record the entries.

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Bond Issue 1 Cash Period Carrying Value Interest Interest Unamortized Balance Period Ending Paid Expense Amortization $623,429 624,523 Sept 1/21 Dec. 1/21 $26,571 25,477 $ 11,375 $ 12,469 $ 1,094 11,375 11,375 11,375 11,375 4,685 3,154 1,592 -0- 645,315 646,846 648,408 12,876 12,906 12,937 12,967* $254,071 1,501 1,531 1,562 Dec. 1/25 1/26 Mar. June 1/26 Sept. 1/26 Totals.. 1,592 $26,571 650,000 $227,500 Bond Issue 2 Cash Period Interest Interest Unamortized Carrylng Period Ending Pald Expense Amortization Balance Value May 1/20. $20,763 $800,763 $ 42,900 $ 42,040 $ 860 19,903 Nov. 1/20. 799,903 May 1/21. 42,900 41,995 18,998 905 798,998 Nov. 1/25. 42,900 41,465 1,435 8,384 788,384 May 1/26. 42,900 41,390 1,510 6,874 786,874 Nov. 1/26 42,900 41,311 1,589 5,285 785,285 May 1/27 Nov. 42,900 41,227 1,673 3,612 783,612 1/27. 42,900 41,140 1,760 1,852 781,852 May 1/28 42,900 41,048* 1,852 -0- 780,000 Totals.. $686,400 $665,637 $20,763