1.Alice, sam, and Carlos Co take advantage of a well-known office furnishing stores low-interest rate financing. Alice, Sam, and Carlos Co buy furniture on the first day of its fiscal year, signing a $10,000, three-year bond. The bond is payable in full at maturity. Interest is payable annually at 2%. The market rate of interest for similar transactions is 4%. At issuance, Alice,Sam and Carlos Co will record a debit to office furniture and a credit to bonds payable for how much?

2.A company calls its bonds before maturity and redeems them. The trial balance accounts pertaining to bonds at the date of call follow: Face value $800,000 Netbook value/carrying amount $776,000 Redemption price - $808,000 Prepare the journal entry

3.CashSpy is a secret spy agency in Downtown LA. They recently issued a $2 million, 6%, 2-year bond, dated January 1, 2020. Interest payments are semi-annual and are paid on July 1 and December 31. The bond was issued at a time when the market interest rate was 8%. The corporate year-end of CashSpy is December 31. On December 31, 2020, The Names Bond would debit interest expense for

4.$100,000 5-year bond, 8.0% interest payable semi-annually, 6.0% market rate. Compute the issue price.

5.TellUs is a server manufacturer. They recently issued a $5 million, 10%, 5-year bond, dated January 1, 2015. Interest payments are semi-annual and are paid on July 1 and December 31. The bond was issued at a time when the market interest rate was 12%. The corporate year-end of Lan Lord is December 31. Prepare the journal entry for the first interest payment on July 1, 2015. (Assume the present value on January 1, 2015, was $4,630,000)