Clark issued $80,000 of 10-year, 8% debentures on 1 January 2021. Clark pays interest each 1 January and 1 July and amortises discount or premium by the straight-line method. The business can issue its debentures under various conditions. Required: 1. Journalise Clarks issue of the debentures and first half-yearly interest payment assuming that the debentures were issued at par value. 2. Journalise Clarks issue of the debentures and first half-yearly interest payment assuming that the debentures were issued at price of 94. 3. Journalise Clarks issue of the debentures and first half-yearly interest payment assuming that the debentures were issued at price of 103. 4. Which debenture price results in the most interest expense for Clark? Explain.

Requirement 1 General journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT

Requirement 2 General journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT