Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $900. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. $ 697,500 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. sl 667,500 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. s 621,000 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. $ 695,250 Feedback Check My Work 1 & 2. Calculate the issue price for each bond then consider the total number of bonds to calculate total proceeds. 3 & 4. The par value is the same as face value. 5. Assume that the bonds are sold for $850 each. Prepare the entry to recognize the sale of the 750 bonds. Cash 637,500 Discount on Bonds Payable 7,500 X Bonds Payable 630,000 Record issuance of bonds at discount Feedback Check My Work 5. When bonds are issued, any premium or discount is recorded in a separate valuation account. 6. Assume that the bonds are sold for $1,075 each. Prepare the entry to recognize the sale of the 750 bonds. Cash 806,2500 Premium on Bonds Payable 22,500 x Bonds Payable 828,750 x Record issuance of bonds at premium