On January 1, 2020, Kirkland Corporation following IFRS, issued some non-convertible bonds with a total par value of $800,000 maturing on January 1, 2025 with interest payable on January 1 of each year. Both the coupon and market rates are not given to you. On December 31, 2021, the company reported the bonds: 10,928 as a current liability and $828,861 as a long term liability; Interest payable of 96,000 as current liability. The company also recorded $83,979 as Interest Expense on December 2022. Now before panic sets in, quickly answer their following questions as stated below. Select the alphabet to the one best answer and input it into the computer.

Question 1 What was the coupon rate of the bond issue? a. 12%. b. 9%. c. 10%. d. 11%.

Question 2 What was the effective rate of the bond issue? a. 7%. b. 8.54 %. c. 10.132%. d. 10%.

Question 3 The journal entry required on December, 2022 for all bond effects on that date is a. Dr. Interest expense 83,964; Dr. Bonds payable12,036 ; Cr. Interest payable 96,000. b. Dr. Interest expense 83,979; Dr. Bonds payable 12,021 ; Cr. Interest payable 96,000. c. Dr. Interest expense 83,979; Cr. Bonds payable 12,036 ; Cr. Interest payable 96,015. d. Dr. Interest expense 96,000 ; Dr. Bonds payable 12,036; Cr. Interest payable 108,036.

Question 4 The journal entry required on December, 2023 for all bond effects on that date is a. Dr. Interest expense 81,454; Dr. Bonds payable 14,546 ; Cr. Cash 96,000. b. Dr. Interest expense 82,777; Dr. Bonds payable 13,223 ; Cr. Interest payable 96,000. c. Dr. Interest expense 82,762; Cr. Bonds payable 13,238; Cr. Interest payable 96,000. d. Dr. Interest expense 82,762; Dr. Bonds payable 13,238 ; Cr. Cash 96,000.

Question 5 On January 1, 2025, the company paid off the bonds plus any interest due. Prepare the journal entry, in proper format, required to record this transaction a. Dr. Interest payable 27,031, Dr. Bonds payable 800,000; Cr. Cash 827,031. b. None. c. Dr. Interest payable 96,000, Dr. Bonds payable 800,000; Cr. Cash 896,000. d. Dr. Interest payable 27,031, Dr. Bonds payable 772,969; Cr. Cash 800,000.