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please do part D,E,F,G,H On January 1, 2024, Power Ltd. issued bonds with a maturity value of $5 million for $4,797,000, when the market rate

please do part D,E,F,G,H image text in transcribed
On January 1, 2024, Power Ltd. issued bonds with a maturity value of $5 million for $4,797,000, when the market rate of interest was 8%. The bonds have a contractual interest rate of 7% and mature on January 1 , 2029. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. On January 1, 2024, Finance Company, a public company, purchased Power Ltd. bonds with a maturity value of $1 million to earn interest. On December 31, 2024, the bonds were trading at 98. Both companies' year end is December 31 . Instructions a. What amount did Finance Company pay for Power Ltd.'s bonds? b. Prepare the journal entry for Finance Company (investor) on January 1, 2024. c. Prepare a bond amortization schedule for Finance Company for the first four interest periods. d. Prepare the journal entries for Finance Company to record (1) the receipt of interest on July 1, 2024; (2) the accrual of interest on December 31, 2024; and (3) the receipt of interest on January 1, 2025. e. Show how the bonds and related income statement accounts would be presented in Finance Company's financial statements for the year ended December 31, 2024. f. Prepare the journal entry for Power Ltd. (investee) on January 1, 2024. g. Prepare the journal entries for Power Ltd. to record (1) the payment of interest on July 1, 2024; (2) the accrual of interest expense on December 31,2024; and (3) the payment of interest on January 1, 2025, assuming Power uses the effective-interest method to amortize any premium or discount. h. Show how the bonds and related income statement accounts would be presented in Power Ltd.'s financial statements for the year ended December 31, 2024

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