Assume that the following are independent situations recently reported in the Wall Street Journal.

XI. Assume that the following are independent situations recently reported in the Wall Street Journal. 1. General Electric (GE) 6% bonds, maturing January 28,2018 , were issued at 111.12 . 2. Boeing 6% bonds, maturing September 24,2032 , were issued at 99.08 . Instructions (a) Were GE and Boeing bonds issued at a premium or a discount? (b) Explain how bonds, both paying the same contractual interest rate, could be issued at different prices. (c) Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $500,000 of bonds in total. XII. Suppose 3M Company reported the following financial data for N and N1 ( $ in millions). Instructions (a) Calculate the current ratio for 3M for N and N1. (b) Suppose that at the end of year N, 3M management used $400 million cash to pay off $400 million of accounts payable. How would its current ratio change