1. Recording a Bond with a Discount or Premium

   1. Sold a bond with a face value of $10,000,000 for $9,683,000. What is the journal entry to record the bond?

   2. The bond has a stated rate of 9% and is payable annually. The market rate at issue was 10%. The bonds were issued on April 1, 2016 and the interest is payable on March 30 each year for 4 years. What is the adjusting entry at Dec. 31, 2016? (Hint: do the amortization table first).

   3. On April 1, 2018 the 50% of the Bonds were retired. The bonds were purchased directly from the market at a price of 99. Record the retirement entry.