1. After the final battle with Voldemort, lots of Hogwarts building are damaged. Therefore, Hogwarts issues $700,000 of 12% bonds, dated January 1999. The interest is paid semiannually on June 30 and Dec 31. The bonds mature in three years. The market yield for bonds of similar risk and maturity is 10%. What are the proceeds from the bond issuance and what journal entry should Hogwarts make to record the proceeds from the sale of the bonds in 1999? What journal entry should Hogwarts make in 2000? 2. Hogwarts wants to issue another loan to cover the construction expense. Therefore, Hogwarts issue $700,000 of 6% bonds, dated January 2001. The interest is paid semiannually on June 30 and Dec 31. The bonds mature in three years. The market yield for bonds of similar risk and maturity is 7%. What are the proceeds from the bond issuance and what journal entry should Hogwarts make to record the proceeds from the sale of the bonds in 2001? What journal entry should Hogwarts make in 2002? 3. On January 1, 2000, Hogwarts called its $700,000, 12% bonds when their book value was S676,288. The indenture specified a call price of $685,000. The bond were issued previously at a price to yield 14%. What journal entry should Hogwarts make to record the early extinguishment of debt? 4. A company issued $200 million of its 8% bonds for $184 million on January 1, 2021. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. The company record interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bond was determined to be $188 million. Company A determined that the increase in fair value was due to the decline in general interest rate. What is the journal entry to record interest on June 30, 2021? What is the journal entry to record interest on December 31, 2021? What is the journal entry to adjust the bonds to their value in December 31, 2021? Is the adjustment recorded in net income or other comprehensive income