I am attaching a spreadsheet and what I think is the instructions to go with it, I am not really sure, but I need help with sheet 10-8A

P10-8A (a) 2011 Jan 1, DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash Bond Premium Bonds Payable (b) (A) (B) (C ) (D) (E ) Semi Interest interest Primium Un Bond annual to be expense Amortization amortizationcarrying Interest paid to be Premium value Period recorded Issue date 1 2 3 4 2011 July 1, Dec 31, Bond Interest Expense Premium B Bond Premium Cash Bond Interest Expense Premium B Bond Premium Cash (c ) 2012 Jan 1, Bond Interest Payable Cash July 1, Dec 31, (d) Bond Interest Expense Premium B Bond Premium Cash Bond Interest Expense Premium B Bond Premium Cash Soprano Electric Balance Sheet As of December 31st, 2012 Liabilities and Equity Current Liabilities Bond Interest Payable Long Term Liabilities Bonds Payable Premium As the illustration shows, one reason to issue bonds is that the stockholder control. Because bondholders do not have voting raise capital with bonds and still maintain corporate control. In attractive to corporations because the cost of bond interest is t result of this tax treatment, which stock dividends do not offer, lower cost of capital than equity financing. To illustrate the third advantage, on earnings per share, assum Microsystems, Inc. is considering two plans for financing the co $5 million plant. Plan A involves issuance of 200,000 shares of current market price of $25 per share. Plan B involves issuanc bonds at face value. Income before interest and taxes on the n million. Income taxes are expected to be 30%. Microsystems c shares of common stock outstanding. Illustration 10-9 shows t on earnings per share. they do not affect ng rights, owners can In addition, bonds are s tax-deductible. As a er, bonds may result in ume that e construction of a new of common stock at the nce of $5 million, 8% e new plant will be $1.5 s currently has 100,000 s the alternative effects