1)

Bowie Company uses the straight-line method for amortization of all bond premium & discounts. During fiscal year 2020 Bowie had the following bond payable transactions:

January 2, issued 20, $1,000 bonds at 102. These 5-year bonds are dated January 1, 2020. The contract interest rate is 5%.Interest is payable semi-annual on January 1 and July 1.

July 1, Bowie issued $400,000 of 8%, 10-year bonds.The bonds are dated January 1, 2020 were issued at 95, and pay interest on July 1 and January 1.

October 1, Bowie issued 10-year bonds $10,000 face value bonds for $10,500 cash. The bonds have a stated rate of 8%. Interest is payable on October 1 and April 1.

Use this information to show me a General Journal entries forthe three bonds issued and any interest accruals and payments for the fiscal year 2020. (Round all calculations to nearest whole dollar.)

2)

Part A

On January 2, 2020,Drake Corp. purchased 20,000 shares of the stock of Gaga Company, and did not obtain significant influence.The investment is intended as a long-term investment.The stock was purchased for $10 per share, and represents a 10% ownership stake.Gaga Company made $20,000 of net income in 2020, and paid dividends of $8,000 on December 15, 2020.On December 31, 2020, Gaga Company's stock was trading on the open market for $12 per share at the end of the year.Use this information to prepare the General Journal entry(ies) for January 2 purchase and the December 15 & 31, 2020 record of income & gain/loss. If no entry is required then write "No Entry Required."

Part B

On January 1, 2020, Grande Company purchased a significant influence shares investment in the Joplin Company for $150,000.This investment balance represents 40% of the equity of Joplin Company.During 2020, Joplin Company reported Net Income of $50,000. On November 15, 2020 Joplin Company paid cash dividends of $20,000 to its shareholders. Use this information to create the January 1, November 15 and December 31, 2020 General Journal entries (without explanation.) If no entry is required, then write "No Entry Required."