Part 7

Railroad co is about to issue $800,000 of 10-years bonds paying a 9% rate, which interest payable semi-annually. The discount rate for such securities is 105. How much can Haden expect to receive for the sale of these bonds? Morten corporation purchased $320,000 of its bonds on june 30, 2012, at 102 and immediately retired them. The carrying value of the bonds on the retirement date as $287,400. The bonds pay annual interest and the interest payment due on june 30, 2012, has been made and recorded McEvoy, Inc., purchased $550,000 of its bonds at 96 on june 30, 2012, and immediately retired them. The carrying value of the bonds on the retirement date was $535,000. The bonds pay annual interest and the interest payment due on june 30,2012, has been made and recorded. Patterson Company had the following transactions pertaining to debt securities held as an investment. Purchased 90,6%, $ 1,000 Marks Company bonds for $90,000 cash plus brokerage fees of $950. Interest is payable semiannually on July 1 and January 1. Received semiannual interest on Marks Company bonds. Sold 45 Marks Company bonds for $46,400 less S500 brokerage fees. Journalize the transactions