Question-1:Calculating the present value of a bond and recording the issuanceLO4,5

Mindsetta Music Inc. issued bonds on March 1, 2017, with a par value of $300,000. The bonds mature in 15 years and pay 8% annual interest in two semiannual payments. On the issue date, the annual market rate of interest for the bonds turned out to be 10%.

Required:

a. What is the size of the semiannual interest payment for these bonds?

b. How many semiannual interest payments will be made on these bonds over their life?

c. Use the information about the interest rates to decide whether the bonds were issued at par, at a discount, or at a premium.

d. Estimate the market value of the bonds as of the date they were issued.

e. Present the journal entry that would be made to record the bonds' issuance.

Date Account Titles Debit Credit

Question-2:Journal entries for bond issuancesLO5,6

On January 1, 2017, Ultra Vision Corp. issued $1,200,000 of 20-year 8% bonds that pay interest semiannually on June 30 and December 31. Assume the bonds were sold at (1) 98; and (2) 102.

Required:

Journalize the issuance of the bonds at 98 and 102.

Date Account Titles Debit Credit

Question-3:Issuing sharesLO3,4

Mainland Resources Inc. began operations on June 5, 2017.

2017 June 5 seopues jebel pue Bupunosse Jo ebueyoxe uj uoneJodJob ey jo siaquebio own of seJeys UOwWOD 000 7 ONES "009 18$ le penleA 15 Received $22 cash per share for the issuance of 75,000 common shares. 16 Issued 10,000 preferred shares for cash of $39 per share. 17 8,000 common shares were issued to a creditor who was owed $130,000. 18 The board of directors declared a cash dividend of $19,500 on the preferred shares and $5,000 on the common shares to shareholders of record on June 20, payable July 1. 30 150,000 common shares were issued In exchange for machinery with a fair market value of $2,600,000. The shares were actively trading on this date at $16.00 per share. July 1 The dividends declared on June 18 were paid