Question $9$

Vadercat Limited issued $$15$ million $4\mathrm{.}0$ percent, $8$ year bonds on September $1,2023.$ The market rate of interest on the date of the issue was $4\mathrm{.}5$ percent. Interest is payable semi$-$annually on March $1$ and September $1.$ The company's year$-$end is December $31.$

Required:

a$.$ Prepare all journal entries required to record the bonds in the company's financial records for the first full year the bonds are outstanding. The company uses the straight$-$line method of amortizations.

b$.$ Indicate how the bond obligation would be shown on the company's year$-$end statement of financial position.

c$.$ How much interest expense, related to this security, is shown on the $2023$ year end income statement?

d$.$ How much interest expense, related to this security, will be shown on the $2024$ year end income statement?