On July 1, Year 1, Danzer Industries inc. issued $30,000,000 of 10-year, 11\% bonds at a market (effective) interest rate of 12%, receving cash of $23,279,382. Interest on the bonds is payable semiannually on Docomber 31 and June 30. The fiscal year of the company is the calendar yoar: Required: 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds an July 1. Year 1." 2. Journalize the entries to recond the following;" a. The first semiannuat inferest payment on December 31, Year 1, and the amortizulion of the bond discount, using the straight-tine merhad. (Round to the nearest dollar.) b. The interest payment on June so, Yoar 2 , and the amorization of the bond discount, using the straight -ine method. (Hound to the noarest dolise.) 3. Determine the fotal interest exponse for Year f. 4. Wil the bond proceeds alisays be less than the face amount of the bonds when the contract rate is fess than the market rate of inteves?? 5. Compute the price of $26,279,368 recowed for the bonds by using the present vaiue tables. (Found to the nearest dolac) -Pefer to the Chairt of Accounts for exact wording of account tities Chart of Accounts CHART OF ACCOUNTS Danzer Industries Inc. General Ledger ASSETS Fh:VENUE 110Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 515 Credit Card Expense 141 Office Supplies 516 Cash Short and Over 142 Store Supplies 521 Sales Salaries Expense 151 Prepaid Insurance 522 Office Salaries Expense 191 Land 531 Advertising Expense 192 Store Equipment 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Omice Equipment 534 Selling Expenses Pri Chart of Accounts 195 Accumulated Depreciation-Olfice Equipment 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 ad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable EQUITY 311 Common Stock 312. Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on Juy 1 , year 1 . 20. Journalge the entry fo record the first semiannual interest payment on Dpcember ill, Yoar 1, and the amortization of the bond discount, irsing the straightine method. (Aound to the noarest dotilar.) Reter to the Chart of Acoounts for exact wording of aceourt bllest. Question not attempted. Question not attempted. 3. Determine the total interest expense for Year 1 . 5. Compute the price of $28,279,368 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearsit dolite) On July 1, Year 1, Danzer Industries inc. issued $30,000,000 of 10-year, 11\% bonds at a market (effective) interest rate of 12%, receving cash of $23,279,382. Interest on the bonds is payable semiannually on Docomber 31 and June 30. The fiscal year of the company is the calendar yoar: Required: 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds an July 1. Year 1." 2. Journalize the entries to recond the following;" a. The first semiannuat inferest payment on December 31, Year 1, and the amortizulion of the bond discount, using the straight-tine merhad. (Round to the nearest dollar.) b. The interest payment on June so, Yoar 2 , and the amorization of the bond discount, using the straight -ine method. (Hound to the noarest dolise.) 3. Determine the fotal interest exponse for Year f. 4. Wil the bond proceeds alisays be less than the face amount of the bonds when the contract rate is fess than the market rate of inteves?? 5. Compute the price of $26,279,368 recowed for the bonds by using the present vaiue tables. (Found to the nearest dolac) -Pefer to the Chairt of Accounts for exact wording of account tities Chart of Accounts CHART OF ACCOUNTS Danzer Industries Inc. General Ledger ASSETS Fh:VENUE 110Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 515 Credit Card Expense 141 Office Supplies 516 Cash Short and Over 142 Store Supplies 521 Sales Salaries Expense 151 Prepaid Insurance 522 Office Salaries Expense 191 Land 531 Advertising Expense 192 Store Equipment 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Omice Equipment 534 Selling Expenses Pri Chart of Accounts 195 Accumulated Depreciation-Olfice Equipment 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 ad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable EQUITY 311 Common Stock 312. Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on Juy 1 , year 1 . 20. Journalge the entry fo record the first semiannual interest payment on Dpcember ill, Yoar 1, and the amortization of the bond discount, irsing the straightine method. (Aound to the noarest dotilar.) Reter to the Chart of Acoounts for exact wording of aceourt bllest. Question not attempted. Question not attempted. 3. Determine the total interest expense for Year 1 . 5. Compute the price of $28,279,368 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearsit dolite)