4. a. $4000 of bond is quoted at 98.05. Are they selling at discount or premium. How much will you actually pay?

4. b. $4000 of bond is quoted at 102.50. Are they selling at discount or premium. How much will you actually pay?

5. Gold Corporation has been authorized to issue 200,000 common shares and 100,000, $2 preferred shares. At Jan 1, 2019, the company had the below in its shareholders equity:

20,000 common shares valued at $200,000

5,000 preferred shares valued at $80,000

Retained earning was $45,000

On Dec 31 2019 the net profit was $25,000 and Gold Corp. issued no dividend during 2019.

In addition, during 2019 the company also issued:

10,000 common shares for $12 each and 2,000 preferred shares for $24 each. Moreover, the company issues 8,000 common shares for land valued at $125,000.

a. Prepare the journal entries for the share issues given above and

b. Prepare the shareholders equity part of the balance sheet in Dec 31, 2019.