Q.4 - Majid Corporation issued 5,000, 12%, 5-year, $1,000 bonds dated January 1, 2020, Instructions (a). Prepare the journal entry to record the issuance of the bonds at 96. (1 mark) (b). Prepare the journal entry to record the conversion of the bonds into 100,000 shares of S10 par value common stock. Assume that bonds were issued at par. (1 mark) Q5 - On July 1, 2020, Saleh Company issued $2,000,000, 10%, 5-year bonds. The bonds were dated July 1, 2020, and pay interest annually on July 1. Financial statements are prepared annually on December 31. Instructions (a). Prepare the journal entry to record the redemption of the bonds before maturity at 96. Assume the balance in Premium on Bonds Payable is $12,000. (1 mark) (b). Assume that on January 1, 2022, Saleh Company pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds. (1 mark)