1. Bonds Payable

On July 1, 2019, ABC Corp. issued $1,000,000 of 11% bonds dated July 1, 2019 for $1,062,771. The bonds were sold to yield 10% and pay interest semiannually on July 1 and January 1. ABC Corp. uses the straight-line method of amortization. The company's fiscal year ends on February 28. The bonds have a life of 10 years, in other words they mature in 10 years. Please add this to the problem and show all completed work in excel.

Required:

1. Prepare the journal entry on July 1, 2019 to issue the bonds.

2. Prepare the entry to record the entries for the first two interest payments.

3. Prepare the journal entry to record the payment of the face amount to the creditors.

Round all amounts to the nearest dollar. Omit explanations for all journal entries.

2. Statement of Cash Flows

ABC Company has the following comparative balance sheet data available:

	12/31/2015	12/31/2014
Cash	$30,000	$80,000
Accounts Receivable, net	160,000	100,000
Inventory	100,000	70,000
Prepaid Rent	20,000	10,000
Total Current Assets	$310,000	$260,000
Equipment	$400,000	$200,000
Accumulated Depreciation	(60,000)	(50,000)
Total Assets	$650,000	$410,000
Accounts Payable	$50,000	$40,000
Salaries Payable	40,000	40,000
Bonds Payable	0	50,000
Common Stock, $10 par	300,000	100,000
Additional Paid-in Capital	50,000	0
Retained Earnings	210,000	180,000
Total Liabilities & Stockholders' Equity	$650,000	$410,000

Additional information:

1. The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31, 2015.

2. Dividends declared and paid in 2015, $70,000.

3. Equipment with a cost of $20,000, with Accumulated Depreciation of $10,000 was sold for $3,000.

4. New equipment was purchased for cash.

Using the indirect method, prepare the statement of cash flows for the year ending December 31, 2015.