2) The Strand Company issued some 6% bonds, face value, $400,000. The term of thebonds is 5 years, with interest to be paid semi-annually. The current market rate forsecurities of this type is more than 6%, therefore the bonds were sold at 96.4. Assume the bonds were dated January 1, 20A and that Strand Company has a fiscal year end ofDecember 31. The bonds were sold on January 1, 20A.

Required:

1. What was the total amount of cash received from the sale of the bonds?

400,000*96.4%= $385,600

2. What is the amount of premium of discount recognized at the sale of the bond?

400,000*3.6%= $14,400

3. What is the amount of premium or discount that should be amortized monthly using the straight-line method?

14400/60= $240

4. What is the amount of interest that will be paid too the bondholders on a monthly basis?

400,000*(6%/12)= $2000

5. Give the journal entry to record the sale of the bonds on January 1, 20A.

6. Give the journal entry to record the first semiannual interest payment on June 30,20A, including the amortization of any premium or discount.

7. Give the journal entry to record the second semiannual interest payment on December 31, 20A, including the amortization of any premium or discount.

8. Show how the bonds would be presented on the December 31, 20A classified balance sheet.

NEED HELP IN LAST FOUR