Assignment chapter 15 & 16.docx-Word Tell me what you want to do. Sign in Share Home Insert Design References Mailings Review File Layout View Cut Find 11 AA Aa E - E EE Arial AaBbCcDc AaBbCcDc AaBbC AaBbCc AaB AaBbCcc AaBbCcD AaBb CcD ab Replace ECopy Paste Format Painter A A = E T No Spac. Subtle Em... Emphasis U ab x x Heading 1 B 1 Normal Heading 2 Title Subtitle Select Clipboard Font Paragraph Styles Editing Question 3 Zhuang Corporation issued $450,000, 9.5%, eight-year bonds on May 1, 2017. Interest is paid semiannually on November 1 and May 1 of each year. On the issuance date, the market rate of interest was 8.5%, resulting in a price of 103.5 for these bonds. The effective-interest method of amortizing the premium or discount is used REQUIRED: a) Is this bond selling at a premium or Answer Par value of the bonds issued discount? How do you tell? $450,000 $465,750 (450,000 x 103.5%) Bonds issue price As the bonds are issued at a price higher than bonds par value, it is considered as Issued at Premium b) Prepare the journal entry on May 1, 2017, to issue the bonds. c) Prepare the journal entry on November 1, 2017, to record the first interest payment and the amortization of any premium or discount d) What is the carrying amount of the bond on the balance sheet after the November 1, 2017 Page 3 of 7 1751 words English (Canada) 130s 11:38 PM A ENG 2019-06-15