Bond Issuance & Interest Payments 1. ABC Company issued $1,000,000 in 5 year, 5% bonds at a discount for $930,000. Bonds pay interest semi-annually. The market rate of interest is 8%. a) Write the journal entry ABC will make to record the bond issuance. b) Write the journal entry ABC will make to record the first semi-annual interest payment to bond holders. (Hint: Record the interest expense, the cash poid, and the amortization of the discount] 2. XYZ Company issued $2,000,000 in 8 year, 6% bonds at a premium for $2,060,000. Bonds pay interest semi-annually. The market interest rate is 4%. a) Write the journal entry XYZ will make to record the bond issuance. a Write the journal entry XYZ will make to record the first semi-annual interest payment to bond holders. (Hint: Record the interest expense, the cash paid, and the amortization of the premium) Stock Issuance & Dividends 1. ABC Company issued 10,000 shares of $1 par common stock at $5 per share. Write the journal entry ABC will make to record issuing the shares