5. On June 1 , 2020 , Shebandowan Investors Inc issued a $ 4340,0110 . 10 % , three - year bond Interest is to be paid semiannually beginning December 1 , 2020. Assume that the market rate of interest is 12 % Use TABLE 14A] and TABLE 14A 2 ( Use appropriate factor ( s ) from the tables provided . } Required : Part 1 Record the following entries ( Do not round intermediate calculations . Round the nal answers to the nearest whole dollar. ) a . Issuance of the bonds on June 1 , 2020 b . Payment of interest on December 1 , 2020 c . Adjusting entry to accrue bond interest and discount amortization on January 31 , 2021 d . Payment of interest on June 1 , 2021 Assume Shebandowan Investors Inc has a January 31 year end. Part 2 Show how the bonds will appear on the balance sheet under non - current liabilities at January 31 , 2022 ( Do not round intermediate calculations . Round the nal answers to the nearest whole dollar . ) 6 On December 31 , 2020 , KEC Environmental Corp. borrowed $ 107.000 by signing a four - year , 6.0 % installment note The note requires four equal payments of accrued interest and principal on December 31 of each year from 2021 through 2024 Use TABLE 14A 2 ( Use appropriate factor( 5 ] 'om the tables provided . ) a . Calculate the size of each of the four equal payments ( Do not round intermediate calculations . Round the fmal answers to the nearest whole dollar . ) b . Prepare an amortization table for this installment note . ( Do not round intermediate calculations . Round the nal answers to the nearest whole dollar . Enter all the amounts as positive values . } 7. On December 31 , 2020 , a day when the available interest rate was 10 % , Valcent Products Inc leased equipment with an seven - year life . The contract called for an $ 7,700 annual lease payment at the end of each of the next ve years , with the equipment becoming the property of the lessee at the end of that period Use TABLE 14A 2 ( Use appropriate factor( 5 ) from the tables provided . ] Required : 1. Prepare entries to record { Do not round intermediate calculations . Round the nal answers to the nearest whole dollar). a . the leasing of the equipment , b . depreciation expense for 2021 assuming straight - line and a zero residual value , c . the December 31 , 2021. lease payment , including the recognition of interest expense on the lease liability on December 31 , 2021 Part 2. Prepare an amortization schedule for the lease liability . ( Do not round intermediate calculations . Round the nal answers to the nearest whole dollar . Enter ali the amounts as positive values