1. ABC Company issues 10% 10-year bonds with a face value of $X and the bonds pay interest twice a year on June 30 and Dec 31. The market interest rate at the date of issue is 12% and the bonds sell for $265,588.50

(1) Compute the face value of the bonds. Descriptively show your workings and round your answers to zero decimal points. (5 points)

(2) Record the journal entry at maturity of bond. Ignore the interest payment entry. (2 points)

2. ABC Company issues X% 10-year bonds with a face value of $100,000, and the bonds pay interest once a year on Dec 31. The market interest rate at the date of issue is 12% and the bonds sell for $88,702.

(1) Record the journal entry at the issue date. (2 points)

(2) Compute the amount of each interest payments that ABC pays every Dec 31. Descriptively show your workings and round your answer to zero decimal points. (4 points)

(3) Compute the coupon rate of the bonds. Descriptively show your workings and round your answer to zero decimal points. (2 points)

(4) Record the journal entry at maturity of bond. Ignore the interest payment entry. (2 points)