1. On 3/1/2020 ABC Co. issued $500,000 8%, 8 year bond to yield 10%. Interest is paid each March 1 and September 1. Fiscal year end is December 31.

The bond is issued for ______________________

The entry to record the issuance of the bond is:

Prepare the amortization schedule for the Bond. You only need to show the first 4 periods. Label the amortization schedule with account names and debits/credits:

2. On 1/1/2020, Star sold a machine with the following terms to Eagle Inc.: cash received $20,000, $40,000 5% (state rate) note receivable due in 5 years with interest payable 1/1 and . Eagles cost of capital is 6%. The original cost of the machine was $25,000 with an accumulated depreciation of $11,000.

The present value of the note is ________________________

The entry Star (seller) would record is:

The entry Eagle (buyer) would record is:

Prepare the first 4 periods of the amortization schedule for the note that Eagle (the Buyer) would prepare. You only need to show the first 4 periods. Label the amortization schedule with account names and debits/credits: