On July 1, 1999, The Fish Co issued $8,500,000 of 10 year, 12% bonds when the market rate of interest was 14%. Interest on the bonds is paid semi-annually on December 31 and June 30. Instructions:

1. Calculate NPV of the bond and Journalize the entry to record the amount of cash proceeds from the sale of the bonds . Use the Present Value tables at the back of your book in Appendix A.

2. Journalize the entry to record the first semi-annual interest payment and the amortization for the bond discount/premium.

3. Repeat instructions 1-2 using a market rate of interest of 10%.

1. Purchased marketable securities in SmithCompanyfor $100,000 cash.

2. Purchased 1,000 shares of Parker Co. for $55,000 as a long term investment.Parker has 10,000 outstanding shares issued and outstanding).

3. Purchased 10,000 shares of Drew Co. for $176,000 as a long term investment. Drew had 40,000 shares issued and outstanding.

Johnson Inc. received the following dividends:

4. $1.50 per share from Parker Co.

5. $3.00 per share from Drew Co.

Additional transactions include:

6. Parker Co. reported a net income of $127,000, and Drew Co. reported a net income of $600,000.

7. After dividends were received, we sold the 1,000 shares of Parker Co. for $60,000 cash.

Instructions: Prepare the journal entries to record the above transactions. Remember to use the space bar to indent the credits. Number the journal entries as indicated above.