61 5 pts Identify each statement as true or false about bonds 1. A bond is a type of financial instrument that a company issues directly to investors bypassing banks or other lending institutions, with a promise to pay the investor a specified rate of interest over a specified period of time. Select] 2. The stated rate will always go up or down over the life of the bond based on fluctuations in the market. Select 3. Issuance of bonds is affected by the stated interest rate only (Select) D Question 7 Glanna, Inc. has issued three different bonds during 2030. Interest is payable annually on each of these bonds. No 1. Accounting Transactions Transactions On January 1, 1.400,9%, 5-year, $1.000 bonds dated January 1.200, were issued at face value (Hint: Calculate the amount of bonds issued by multiplying number of bonds issued by the price per bond) 2 On July 1. $840,000, 10%, 5-year bonds dated July 1, were issued at 104 3. On September 1, $327,000, 8%, 5-year bonds dated September 1, were jissued at 98 Assets Cath Chart of Accounts Liabilities Accounts Payable Uneamed Revenue Accounts Receivable Allowance for Doubtful interest Payable Accounts inventory Supplies Prepaid Insurance Equipment Land Accumulated Depreciation Taxes Payable Notes Payable Bonds Payable Premium on Bond Payable Discount on Bonds Payable Stockholders' Equity Common Stock Retained Earnings Sales Revenue Sales Retums and Alowances Sales Discounts interest Expense Bad Debt Expense Advertising Expense Insurance Expen Wages and Sales 25pts issued at 98 Cash Accounts Receivable Unearned Revenue Assets Chart of Accounts Liabilities Accounts Payable Stockholders' Equity Common Stock Retained Earnings Allowance for Doubtful Interest Payable Sales Revenue Accounts Inventory Taxes Payable Supplies Notes Payable Prepaid Insurance Bonds Payable Sales Returns and Allowances Sales Discounts Interest Expense Equipment Premium on Bonds Payable Bad Debt Expense Building Discount on Bonds Payable Advertising Expense Land Insurance Expense Accumulated Depreciation Wages and Salaries- Expense List debit transactions first and then list credit transactions. Use accounts provided in the Chart of Accounts above. Do NOT create your own account. When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Prepare the journal entry to record each bond transaction at the date of issuance. General Journals No. Date Account Titles and Explanation Debit ($) Credit (5) 1. 1/1 27/1 Bonds Payable 3. 9/1 Cash