1. Vaughn Corporation issues $560,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

2. On January 1, 2017, Cullumber Corporation issued $690,000 of 9% bonds, due in 10 years. The bonds were issued for $647,006, and pay interest each July 1 and January 1. Cullumber uses the effective-interest method.

Prepare the companys journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%.

3. On January 1, 2017, Oriole Corporation issued $580,000 of 9% bonds, due in 10 years. The bonds were issued for $619,414, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the companys journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Oriole uses the effective-interest method.

4. Carla Corporation issued $560,000 of 7% bonds on November 1, 2017, for $601,659. The bonds were dated November 1, 2017, and mature in 10 years, with interest payable each May 1 and November 1. Carla uses the effective-interest method with an effective rate of 6%. Prepare Carlas December 31, 2017, adjusting entry.