Problem 1: On January 1, Taylor Inc. issued $200,000 par bonds with a stated rate of 8% that mature in 5 years. The market rate on the date of issuance was 10% and the bonds pay interest semiannually on June 30 and December 31. Prepare the journal entry to record the issuance of the bonds. Also prepare the journal entry for June 30 and December 31 of the first year assuming Taylor uses the SL amortization method. Finally, indicate the total amount of interest expense that will be recognized over the life of the bonds. 24 25 26 27 Problem 2: 28 On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031 when the market rate was 29 10%. These bonds pay interest every October 31 and April 30. Tyler Corp's year end is December 31. Assuming Tyler uses the effective interest method, prepare the journal entry to record the issuance, and prepare an amortization schedule for the first 2 years of the bonds' lives. Finally, prepare the journal entry to be made on December 31, 2021 and December 31, 2022. 30 31 32 33 34 35 36 37 38 46 48 49 50 Problem 3: 51 52 53 54 On October 31, 2020, Hogwart's Corp. issued a 7% installment note for a shipment of cauldrons and brooms. The market value of the shipment on October 31 was $215,000. The agreement called for 6 annual payments of $45,106 beginning on October 31, 2021. Prepare the journal entry for the date of issuance and the journal entries for the first three payment dates. 55 56 57 58 59 60 61