1)

A) A company issued 10%, 15-year bonds with a par value of $670,000 that pay interest semiannually. The market rate on the date of issuance was 10%. The journal entry to record each semiannual interest payment is:

B) On January 1, Parson Freight Company issues 8%, 10-year bonds with a par value of $2,300,000. The bonds pay interest semiannually. The market rate of interest is 10% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

C) On January 1 of Year 1, Congo Express Airways issued $3,550,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,300,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,097 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of:

D) On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,185,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be:

E) On January 1 of Year 1, Congo Express Airways issued $3,550,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,497,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,058 every six months. The life of these bonds is:

F) On January 1, a company issued and sold a $550,000, 7%, 10-year bond payable, and received proceeds of $496,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:

G) A company issued 10-year, 7% bonds with a par value of $105,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

H) A corporation borrowed $195,000 cash by signing a 5-year, 9% installment note requiring equal annual payments each December 31 of $32,136. What journal entry would the issuer record for the first payment?

I) On August 1, a $90,000, 6%, 5-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $11,223.34. The entry to record the first payment on July 31 would include:

J) A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation called the bonds at $990,000. The gain or loss on this retirement is: