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II- On 1-1-19, XYZ, Inc. issued $3,000,000, 9%, 5 year bonds. Interest is payable on June 30 and December 31 of each year. The market
II- On 1-1-19, XYZ, Inc. issued $3,000,000, 9%, 5 year bonds. Interest is payable on June 30 and December 31 of each year. The market rate of interest on 1-1-19 is 10%. Required: 1. Determine the price of the bonds at January 1, 2019. 2. Prepare ALL the necessary journal entries about those bonds for 2019. 3. Prepare an amortization schedule showing the effective rate for 2019. 4. What amounts related to the bonds that XYZ will report on its Dec.31, 2019 balance sheet? 5. What is the amount related to the bonds that the company will report on its Dec. 31, 2019 income statement? Show your computations for each
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