Please show all supporting computations. Points will be deducted if you do not show your work. 1. Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Company: (4 points) January 1 Issued $3.000,000 of Pitts Company 5-ycar, 4% bonds at a price of 96.5. Interest on the bonds is payable semiannually on July 1 and January 1. The bonds are callable after 2 years at a price of 102. July 1 Paid semiannual interest on Pitts Company bonds. (Use straight-line amortization) December 31 Accrued semiannual interest on Pitts Company bonds. Debit Credit Account Titles Date At the end of the year, after two amortization entries, what is the carrying value of the bond? -1 - 2. On May 1, Mason Company issued $3,500,000, 6% bonds for face value plus including accrued interest. Interest is payable semiannually on January I and July 1. Prepare the journal entries to record the May 1 bond issue and the July 1 interest payment (2 points) Account Titles Date Debit Credit 3. Greer Industries issued $6,000,000 of 6% debentures on May 1, 2019 and received cash totaling $5,513,346. The bonds pay interest semiannually on May 1 and November 1. The firm uses the effec- tive-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective- interest rate of 8%. Complete the following table indicating the total dollar amount of discount or premium amortization during the first year these bonds were outstanding. Show computations and round to the nearest do lar. (2 points) Amortization Table Carrying value Amortization (A - B) Cash paid (A) Interest Expense (B) Date November 1 May 1 Shift End 4. Hurst, Incorporated sold its 8% bonds with a maturity value of $4,500,000 on August 1, 2018 for $4,419,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the S4de is payable semiannually on August 1 and February 1, The bonds are called at a price of 103 on oIst 1, 2020. Assume the Hurst used straight-line amortization. Prepare the journal entry to record the bond call. (2 points) Date Account Titles Debit Credit