rinciples of Accounting II tal Marks: 10 Marks Obtained: ame of Student Student ID CL0 34 Assignment 2 1. Kershaw Electric Lid. Sold 56,000,000 10%, 15-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and paid interest on January 1. The bonds were sold at 98 Instructions: a. Prepared Journal entry to record the issuance of the bonds on January 1, 2020 b. On January 1, 2022 when the carrying value of the bonds was $ 5,896,000, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period was already paid. CLO 3 (4 Marks) 2. On January 1, 2020, Belgium Industries had the following equity accounts. Share capital - ordinary (54 Par Value, 250,000 shares issued and outstanding) Share Premium - Ordinary Retained Earnings $1,000,000 200.000 840,000 During the year, the following transactions occurred. Jan 15 Declared a 1 cash dividend per share to shareholders of record on January 31, payable at February 15. Feb 15 Paid the dividend declared in January Apr 15 Declared a 10% share dividend to shareholders of record on the April 30, distributable May 15. On April 15, the market price was Sil per share. May 15 Issued the shares for the share dividend July Announced a 2 for 1 share split. The market price per share prior to the announcement was $12 (The new par value is S2) Dec 1 Declared a $0.50 per share cash dividend to shareholders of record on December is payable January 10, 2021 31 Determined that net income for the year was $264,000 1 Instructions 1. Joumalize the transactions and the closing entries for net income and dividend. 2. Prepare equity section at December 31. CLO 4 (6 Marks)