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QUESTION 1 25 points On January 1, 2020, Omni Co. issued five-year bonds with a face value of $5,000,000 and a stated interest rate of

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QUESTION 1 25 points On January 1, 2020, Omni Co. issued five-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on July 1and January 1. The bonds were sold to yield 12%. Omni usually uses the effective interest method to amortize the discount or premium on its bonds. Instructions: (Please clearly indicate the factors you used from the attached factor tables, show your calculation for partial credits and round your answers to the nearest dollar) A Calculate the issue price of the bonds on January 1, 2020. B. Prepare the journal entry to record the bond issuance for Omni Co. on January 1, 2020. c. Prepare the journal entry to record the interest expense on 7/1/2020 for Omni Co. D. Prepare the amortization table ONLY for 2020, assuming that amortization is recorded on interest payment dates using the effective-interest method. Present Value of SI Future Value of $1 Future Value of An Ordinary Annuity of S1 1096 Period 5% Present Value of an Ordinary Annuin of 95% 10% 0.9524 0.9434 0.9091 1096 @5% 10% 1 0.9524 0.9434 0.9091 10500 1.0000 1.1000 1.0000 1.0000 1.0000 2 0.9070 0.8265 1.8594 1,8334 1.7355 1.1236 1.2100 2.0500 2.0600 2.1000 0.8900 0.8396 1.1025 1.1576 3 0.8638 0.7513 2.7233 2.6730 2.4869 1.1910 1.331 3.1525 3.1836 3.3100 4 0.8227 0.7921 0.6830 3.5460 3.4651 3.1699 1.2155 1.2625 1.4641 4.3101 43746 4.4610 5 0.7835 0.7473 0.6209 4.3295 3.7908 1.2763 1.3382 1.6105 5.5256 5.6371 6.1051 4.2124 4.9173 6 0.7462 0.7050 0.5645 5.0757 4.3553 1.3401 1.4185 1.7716 7.7156 6.8019 6.9753 8.1420 8.3938 7 0.7107 0.6651 0.5132 5.7864 5.2824 4.8684 1.4071 1.5036 1.9487 9.4872 8 0.6768 0.6274 0.4665 6.4621 6.2098 5.3349 1.4775 1.5939 2.1436 9.5491 9.8975 11.4359 9 0.6446 0.5919 0.4241 7.1078 6.8017 5.7590 1.5513 1.6895 2.3580 11.0266 114913 13.5795 10 0.6139 0.5584 0.3855 7.7217 7.3601 6.1446 1.6289 1.7909 2.5937 12.5779 13.1808 15.9374

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