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4. On November 1, 2019, Fields/Russell Corporation issued $800,000 worth of ten-year, 9 percent bonds. The semiannual interest dates are November 1 and May 1.

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4. On November 1, 2019, Fields/Russell Corporation issued $800,000 worth of ten-year, 9 percent bonds. The semiannual interest dates are November 1 and May 1. Because the market interest rate of similar investments was 8.5 percent, the bonds were issued at a price of 103. Ignoring year-end accruals, prepare entries in journal form without explanations to record the bond issue on November 1, 2019, and the payments of interest and amortization of premium on May 1 and November 1, 2019. Use the effective interest method of amortization. Round answers to the nearest dollar. A. Show the journal entry required to record the issue of the bonds. (3) B. Show the journal entry required to record the interest payment on May 1, 2020. [6] C. Calculate the amount to be recorded for interest expenseon November 1, 2020. [4] 5. On December 31, 2018, the balance sheet of Alphabet Corporation reported bonds outstanding with a face value of $6,000,000 and a related unamortized premium of $180,000. Interest is payable semiannually on January 1 and July 1. Prepare an entry in journalform without explanation on January 1, 2018, to record the conversion of bonds with a face value of $2,400,000 into common stock. Each $1,000 bond is convertible into 30 shares of $20 par value common stock. [6] [ Prepare an income statement using the following data for Land O Lark Corporation for the year ended December 31, 2018: Sales Cost of merchandise sold Operating expenses Losses from asset impairment Income tax expense Loss on discontinued operations (before taxes) Income from sale of discontinued segment (before taxes) Dividend Income from investments Interest on loan taken Common stock outstanding ($2 par) Authorised share capital ($2 par) $24,500,000 10,900,000 6,300,000 2,800,000 40% 500,000 200,000 125,000 60,000 400,000 1,000,000

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