Assume that in early January, 2016, a company issued Br. 250,000 of ten-year, 8% serial

bonds, to be repaid in the amount of Br. 25,000 each year. Assume that interest payments

are made annually. As to the yield rate, assume the following two cases:

se 1: 6%Case 2: 10%

Required

Compute the proceeds received on the bonds under case1.

Compute the amount of bond premium at the time of issuance under case 1.

Compute the proceeds received on the bonds under case 2.

Compute the amount of bond discount at the time of issuance under case 2.

Present the journal entry to record the issuance of the bonds under case 1.

Present the journal entry to record the issuance of the bonds under case 2.

Prepare premium amortization table for the serial bonds using the interest method.

Prepare premium amortization table for the serial bonds using the bonds outstanding method.

Prepare the discount amortization table for the serial bonds using the interest method.

Prepare discount amortization table for the serial bonds using the bonds outstanding method.

Present the journal entry to record the retirement of the first serial bond and the payment of

the first interest.

a) Under case 1 using the interest method

b) Under case 1 using the bond outstanding method

c) Under case 2 using the interest method

d) Under case 2 using the bond outstanding method