Chapter 12 Problem Set B Problem 12-2 (continued from Problem Set A) ABC, Inc. issued $500,000, 7%, 25-year bonds on January 1, 2019, at 99. Interest is payable annually on Part C: C. a. Calculate the amount of a single interest payment. b. Calculate the amount of the Discount that will be amortized with each payment. Calculate the amount of Interest Expense that will be recorded with each payment. d. Prepare the journal entry to record the payment of interest and bond discount/premium amortization on December 31, 2019. Part D: I Prepare the journal entry at maturity on January 1, 2014 Problem 12-3 Tonic Company issues $400,000 of 10%, 5-year bonds on January 1, 2019 at 104. Interest is payable semi-annually on June 30 and December 31. Tonic has a calendar year end and uses the straight-line method of amortization. 1. Prepare the journal entry for January 1, 2019. 2. Prepare the journal entry for June 30, 2019. 3. Prepare the journal entry for December 31, 2019. 4. Show how the bond would appear on the December 31, 2019 Balance Sheet. 5. Prepare the amortization table for Tonic Company's bonds, using the following headings: Date/ Interest Amortization Interest Unamortized Carrying Period Payment of Premium Expense Premium Value 6. Prepare the journal entry for January 1, 2024 when the bond matures. Problem 12-4 Ritter Company issues $500,000 of 10%, 10-year bonds on January 1, 2015 at 95. Interest is payable annually on December 31. Ritter has a calendar year end and uses the straight-line method of amortization. 1. Prepare the journal entry for January 1, 2015. 2. Prepare the journal entry for December 31, 2016. 3. Show how the bond would appear on the December 31, 2016 Balance Sheet. 4. Prepare the amortization table for Ritter Company's bonds, using the following headings: Date/ Interest Amortization Interest Unamortized Carrying Period of Discount Payment Value Expense Discount 5. Prepare the journal entry for January 1, 2025 when the bond matures