A B C D E F H 1 Part 3 2 Case 1 3 A stated annual interest rate of 4 5 6 7 8 Answer all the questions in the spaces provided (Yellow cells) 1-Apr-19 Bobby Inc. issued 100.00 bonds, each with a face value of On the issue date, the market rate was The bonds mature in $ 2,000.00 2.0% paid semi-annually on March 31 and September 30. 2.0% Prepare the journal entries for the fiscal year-end December 31, 2019 to record: The bond issue, the interest payment and the accrual of interest. 4 years. 9 10 11 [1 Mark] Date 1-Apr-19 General Journal Debit Credit 12 13 14 15 [2 Marks] 30-Sep-19 16 17 18 19 [2 Marks] 31-Dec-19 20 21 22 23 24 Case 2 Simon Inc. issued bonds and received cash in full for the issue price with the following amortization schedule: 25 26 Date Cash paid for interest payament Interest expense Amortization Book value 27 1-Aug-19 $ 222323 28 31-Jul-20 500.00 583.96 83.96 9,732.70 9,816.66 29 31-Jul-21 500.00 589.00 89.00 9,905.66 30 31-Jul-22 500.00 594.34 94.34 10,000.00 31 2A Determine the bonds' annual stated interest rate [1 Markl INSTRUCTION Part 1 Part 2 Part 3 Part 4 + K L M N P Q R SA H | ] K L M N P A B C D E F 22 23 24 Case 2 Simon Inc. issued bonds and received cash in full for the issue price with the following amortization schedule: 25 26 Date Cash paid for interest payament Interest expense Amortization Book value 27 1-Aug-19 $ 9,732.70 28 31-Jul-20 500.00 583.96 83.96 9,816.66 29 31-Jul-21 500.00 30 31-Jul-22 500.00 589.00 594.34 89.00 9,905.66 94.34 10,000.00 31 32 2A Determine the bonds' annual stated interest rate 33 [1 Mark] 34 35 2B Determine the market rate (or the effective interest rate) 36 [1 Mark] 37 38 2C 39 40 41 [1 Mark] Date 1-Aug-19 Prepare the journal entry for the issuance of the bonds and the accrual of interest for the fiscal year 2019. General Journal Debit Credit 42 43 44 [2 Marks] 31-Dec-19 45 46 47 48 49 50 51 52 53 54 INSTRUCTION Part 1 Part 2 Part 3 Part 4 + 0 R SA