Please answer the question with clear answer Please answer the question with clear answer

Please answer the question with clear answer

Please answer the question with clear answer

Q: Prepare the entry for Jan. 1, 2011, to record the following bond issue by SABIC. Par value = $500,000 Issue price = 92.6405% of par value $500,000 * 92.6405%=463203 Par value Issue Value Discount Value 500000 - 463203 = 36797 Stated interest rate = 10% Market interest rate = 12% (Bond will sell at a discount) Interest dates = 6/30 and 12/31 Bond date = Jan. 1, 2011 Maturity date = Dec. 31, 2015 (5 years) Pass journal entry 1. Issued of Bond, 2. Pass entry for every six months to record the cash interest payment and the amortization of the premium. 3. Journal entry on retirement of the bond Q: Latif Furniture Business in Riyadh nd a balance of SR25,000 in his Bank, but his cash book balance shows only 5 15,000 in the business a. Do such difference appear among businesses, 11', yes, why do you think there is a difference. b. Bring out the causes of differences between cash and bank balance