Problem 1 On January 1, 2015 XYZ Company issued $100,000 of 10 year 10% bonds dated January 1, 2015. Interest on the bonds are payable semi-annually. The market rate of interest for a similar bond with similar risk factors was also 10% Required prepare all the necessary journal entries and T-accounts for 2015 and 2016 and the journal entry and T-account upon bond maturity on December 31, 2019

XYZ Company issued 10,000 shares of common stock for $1,000,000. The common stock has a par value of $1.00. Prepare the journal entry and T accounts for the stock issuance