$($PLEASE REFER TO PHOTOS FOR QUESTION DETIALS AND ANSWR FORMATTING, THANK YOU!$)$Show calculations here

a$)$ Show calculations here

f$)$

g$)-$ j$)$ Record the entry for the issue, first interest payment, accrual of interest at December $31$st

and the second interest payment for $($b$).$Question $7$: Bonds Payable $(32$ marks$)$

On January $1^{st},2024,$ Martin's Magic issued their first bond. The bond will have a face value

of $$1,000,000$ and semi$-$annual interest payments at an annual rate of $6\%.$ The bond would

have a life of $4-$years.

Scenario $1$

a$)$ If the current market rate was $7\%,$ calculate the present value of this bond? $(4$ marks$)$

b$)$ Prepare the journal entry to record the issue of this bond on January $1^{st}.(2$ Marks$)$

c$)$ Prepare the journal entry to recognize the first interest payment on July $1^{st.}.(4$

Marks$)$

d$)$ Prepare the journal entry to accrue interest at December $31$st$.(4$ marks$)$

e$)$ Prepare the journal entry to pay interest owing on January $1.(2$ marks$)$

Scenario $2$

f$)$ If the current market rate was $5\%,$ calculate the present value of this bond? $(4$ marks$)$

g$)$ Prepare the journal entry to record the issue of this bond on January $1^{st.}.2$ Marks$)$

h$)$ Prepare the journal entry to recognize the first interest payment on July $1^{st}.(4$

Marks$)$

i$)$ Prepare the journal entry to accrue interest at December $31$st$.(4$ marks$)$

j$)$ Prepare the journal entry to pay interest owing on January $1.(2$ marks$)$