1. On Jan 1, 2016 BrightStar inc. borrows $1000 from a local bank to finance the purchase of equipment needed in operations. The note is payable bears interests at 10% compounded semiannually. The note is payable in equal installment. June and December, in each of the next 3 years each installments is $197,017. Make journal entries at the time of borrowing and for the first and second payments.

2. On Jan 1, 2016 BrightStar inc. issues $1,000,000 of 8% semiannual 3 year coupon bonds with yields-to-maturity of 10%. The present value of all future cash flows is $949,242 A. Make a journal entry at the time of issuance B. Make journal entries at the first and second coupon payment