Data for the next 3 questions: Holly Company issued $1,800,000, 5%, 12-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 5%.

7.Provide the journal entry that must be made on issue date of the bonds.

	Debit	Credit

8. Complete the following partial amortization schedule. Include only the final number for each cell.

pay #
0
1
2

9.Provide the necessary journal entry that company must make for the 2nd interest payment on the bond.

	Debit	Credit

Data for the next 6 questions: Kamp Company engaged in leasing a machine for quality control that requires payment of $1,200 at the end of each month. The economic life of the machine is 5years. Kamp Company normally is subject to 6% interest rate in business transaction.

10. Assume leas period is 15 months.Provide journal entry on the date the lease contract was signed.

	Debit	Crebit

11. Assume leas period is 15 months.Complete the following partial amortization schedule. Include only the final number for each cell

Schedule Title:

Pay#
0
1
2

12. Assume leas period is 15 months.Provide the necessary journal entry that company must make for the 2nd monthly payment.

	Debit	Credit

13. Assume leas period is 50 months. Provide journal entry on the date the lease contract was signed.

	Debit	Credit

14. Assume leas period is 50 months. Complete the following partial amortization schedule.Include only the final number for each cell.

Schedule Title:

Pay#
0
1
2

15. Assume leas period is 50 months. Provide the necessary journal entry that company must make for the 2nd monthly payment.

	Debit	Credit