Question 3 (20 Marks) a) Prudence Corporation purchased a machine for $280,000 on October 1, 2019, by paying 30% down payment in cash and for the balance amount signed a 5%, 9-month note payable for the balance amount. Interest and principle will be paid back together at the end of the note. Prepare journal entries to record: (14 Marks) i the purchase of the delivery truck, ii. the adjusting journal entry to record the accrued interest on December 31, and the payment of the note at maturity along with the interest lli b) On January 1, 2019. Prudence Corp. issued $220,000 face value, 5-year bonds, with a coupon rate of 6%. Coupon is paid semi-annually on June 30 and December 31 each year. Prepare the necessary journal entries to record the: 6 marks) i) issuance of the bonds on Jan 1, 2019 ii) payment of first coupon payment on June 30, 2019. 2 Question 4 (20 Marks) Mark Inc. has authorized share capital of an unlimited number of common shares and 800,000 preferred, 52 preferred shares. At January 1, 2019, the balance in its shareholders equity includes 560,000 in common shares representing 20,000 shares and $45,000 in preferred shares representing 1,500 shares and retained earnings of $110,000. Profit for the year ending December 31, 2019 was $20,000. No dividends were declared during 2019. During 2019, Mark Inc. had the following share transactions: Mar 1 Issued 3,000 common shares for $5 each. Issued 600 preferred shares for $12 each. Sep Issued 50,000 common shares in exchange for land valued at $250,000, Required: a) Journalize the share transactions. (8 marks) b) Prepare the equity section of Mark Inc. balance sheet at December 31, 2017 and describe any additional disclosure required related to share capital. (12 marks) Jun 30