Problem #4 (15 points) McDonald Company issued bonds with a face amount of $1,600,000 in 2012. As of January 1, 2017, the balance in Discount on Bonds Payable is $4,800. At that time, McDonald redeemed the bonds at 97. Instructions Assuming that no interest is payable, make the entry to record the redemption. Problem #5 (15 points) On January 1, 2017, McDonald Company issued 5-year bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Instructions a. Prepare the journal entry for the issuance assuming the bonds are issued at 95. b. Prepare the journal entry for the issuance assuming the bonds are issued at 105. C. Record all necessary entries on December 31, 2017 Problem #3 (20 points) On January 1, 2017, McDonald Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2017, payable on January 15, 2018. The market value of McDonald Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2017 was $500,000. Instructions (1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. Problem #2 (20 points) On January 1, 2017, McDonald Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 25,000 shares of common stock for $550,000. June 1 Declared a cash dividend of $2.00 per share to stockholders of record on June 15. June 30 Paid the $2.00 cash dividend. Dec. 1 Purchased 5,000 shares of common stock for the treasury for $22 per share. Dec. 15 Declared a cash dividend on outstanding shares of $2.25 per share to stockholders of record on December 31. Instructions Prepare journal entries to record the above transactions