1) On September 1, 2021, Imperial Corporation issued $1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022. Instructions

a)	Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds

if the market rate of interest is 5%. Round your answer to the nearest dollar.

b)	Assuming Imperial has a December 31 year end, prepare the 2021 year-end adjusting entry to

account for accrued interest on the bonds. Round your answer to the nearest dollar.

c)	Prepare a partial balance sheet at December 31, 2021 for Imperial Corporation displaying all

amounts related to the bonds.

d)	Prepare the journal entry on September 1, 2022 to record the first interest payment.

e)	Assume the bonds were redeemed for $1,050,000 at September 30, 2024 when the amortized

cost was $1,035,000. Record the redemption of the bonds.

2) The following information is available from the accounting records of DeWitt Engineering Ltd. for the year ended June 30, 2021:

Fee discounts and allowances

$26,000

Fee revenue

1,560,000

Interest revenue

6,000

Other operating expenses

590,000

Salaries expense

750,000

Gain on fair value adjustments on equity investments

31,000

Instructions Prepare a combined Statement of Income and Comprehensive Income for the year ended June 30, 2021. The company has a 30% income tax rate and records gains and losses on equity investments as other comprehensive income.