Morimoto, Inc issues bonds with the following information.

Morimoto, Inc Bond Issuance

Description Data

Par Value $5,000$

Term $5$ years

Contract Interest Rate $5\%$

Market Interest Rate $7\%$

Issue Price $96$

Is this bond issued at par value, at a discount, or at a premium?

This bond pays interest semi$-$annually. How many total interest payments will be made?

What is the amount of each semi$-$annual interest payment?

How much cash will Morimoto receive when one bond is issued?

If there is a discount or premium, how much is it$?$

If there is a discount or premium, how much will be amortized with each interest payment?

How much interest expense will be recorded each time a semi$-$annual interest payment is made?

Prepare the journal entry to record the issuance of one bond.

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Prepare the journal entry to record the semi annual interest payment on one bond.

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Prepare the journal entry to retire the bond.

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