Dear Chegg members,

Provide the solution for below mentioned question:

On Jan. 1, 2015, Manama Corporation issued 2500 Bonds payable for 2-Years at face value of $1,000 per bond. The stated interest rate is 16%, and paid quarterly on 30/03; 30/06; 30/09 and 31/12

Instructions:

1. Compute the issue price of bonds, if the market interest rate 12%?
2. Prepare the table of amortization?
3. Prepare the journal entry for the first year?
4. Prepare the journal entry to record the recall of bonds at 30/06/2016, the bonds are recalled at 98 and the recall expenses are $3,500?
5. Assume the firm recalled the bonds at 30/06/2016, the bonds are recalled at 102 and the recall expenses are $3,500?