1) A company issued $2,000,000 of 30 year, 8% bonds on April 1 2005, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 2005 Apr1. Issued the bonds for cash at their face amount Oct1. Paid the interest on the bonds 2005 Oct1. Called the bond issue at 103, the rate provided in the bond indenture. ( Omit entry for payment of interest) April 1 2005: Oct 1 2005: Oct 1, 2009 2) On the first day of the current fiscal year $2,000,000 of 10 year, 7%percent bonds with interest payable annually were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year: (a) Issuance of the bonds (b) First annual interest payment (c) Amortization of bond premium for the year, using the straight -line method of amortization A. B. C. 3) Calculate the present value of a $20,000 7%, 5 year bond that pays $1,400 ($20,000 X 7%) interest annually, if the market rate of interest is 7%. 4) On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5 year bond that pays semi-annual interest of $35,000 ($1,000,000 X 7% X 1/2), receiving cash of $884,171. Journalize the entry to record the issuance of the bonds