HW 10 1. New Park in Ithaca issued $3,000,000, 9%, 10 year bonds on 1/1/18. The bonds pay interest semiannually every June 30 and December 31. The market rate of interest is 7.5%. Required: (round all amounts to the nearest dollar) a. Prepare the journal entry to record the issuance of the bonds. b. Prepare the journal entry to record the interest payment on June 30, 2018, c. Prepare the journal entry to record the interest payment on December 31, 2018, d. How will New Park present its bonds on its December 31, 2018 balance sheet? 2. Rasa Spa issued $500,000, 6%, 5-year bonds on 1/1/18. The bonds pay interest every December 31. The market rate of interest is 8%. Required: (round all amounts to the nearest dollar) a. Prepare the journal entry to record the issuance of the bonds. b. Complete an amortization table showing all calculations for the life of the bonds (see excel on Bb or tables in the text as examples). c. Prepare the journal entry to record the interest payment on December 31, 2018 d. Prepare the journal entry to pay the bonds at maturity. 3. Two years ago the city of Ithaca issued $1,600,000 of bonds for $1,650,000 to complete several construction projects in Fall Creek. The city has decided to retire the debt and the bonds are currently selling at 106. The carrying value of the bonds on the date of retirement is $1,613,000. Required: Record the journal entry for the retirement of the bonds