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1 . Santos SA issues $ 3 0 0 , 0 0 0 in bonds dated January 1 , 2 0 2 2 , due

1. Santos SA issues $300,000 in bonds dated January 1,2022, due in five years with 9 percent interest payable annually on January 1. At the time of issue, the market rate for such bonds is 9percent.a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions on journal entries. 2. Assuming now that Santos issues $300,000 in bonds, due in five years with 9 percent interest payable annually at year- end. At the time of issue, the market rate for such bonds is 11percent. a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions in journal entries.

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