Carla Vista Company retired $560,000 face value, 10% bonds on June 30,2020 at 97 . The carrying value of the bonds at the redemption date was $567,900. Prepare the journal entry to record the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Cullumber Corporation issues a $9,100,000,4%,20-year mortgage note payable on December 31, 2020, to obtain needed financing for the construction of a building addition. The terms provide for annual installment payments of $669,594 on December 31. (a) Prepare the journal entries to record the mortgage loan on December 31, 2020, and the first installment payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) eTextbook and Media List of Accounts Attempts: unlimited (b). Will the amount of principal reduction in the second installment payment be more or less than with the first installment payment? On December 31, 2020, Crane, Inc. sold \$3,850,000 (face value) of bonds. The bonds are dated December 31, 2020, pay interest annually on December 31, and will mature on December 31, 2020. The following schedule was prepared by the accountant for 2020. On the basis of the above information, answer the following questions. (a1) What is the stated interest rate for this bond issue? Stated interest rate % eTextbook and Media List of Accounts Attempts: unlimited (a2) What is the market interest rate for this bond issue? Market interest rate % eTextbook and Media List of Accounts Attempts: unlimited (a3) What was the selling price of the bonds as a percentage of the face value? (Round answer to 1 decimal place, e.g. 52.7.) Carla Vista Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are: 1. Issue 60,000 shares of $10 par value common stock at $50 per share. 2. Issue $3,000,000,7%,10-year bonds at par. It is estimated that the company will earn $930,000 before interest and taxes as a result of acquiring the medical equipment. The company has an estimated tax rate of 40% and has 90,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for these two methods of financing. (Round earnings per share to 2 decimal places, e.g. 2.25.) Pharoah Company issued a $3,800,000,11%,10-year mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $645,245. Prepare the entry to record: (a) the mortgage loan on December 31, 2020. (b) the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) On January 1,2020 , Crane Corporation issued $750,000,8%,10 year bonds at face value. Interest is payable annually on January 1. Crane Corporation has a calendar year end. Prepare all entries related to the bond issue for 2020 and January 1,2021 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Prepare the journal entry to record the sale of the bond issue on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) eTextbook and Media L Attempts: unlimited (a5). Prepare the journal entry to record the payment of interest and amortization of discount on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)