Question 2: (10 points) C1, D3

Rama company at the beginning of 2019 issued (5 years) $300,000 bonds when the stated rate was 10% and the market one was 5%.

Instructions:

1- Calculate the premium or discounts on bonds.

2- Prepare the amortization schedule.

3- Prepare the journal entry at the issuing date and at the end of 2019.

a- Issuing date:

b- At the end of 2019:

4- If the company recalled its bonds at the end of the second year at $210,000. Prepare the recalling entry.