Solutions to problems 27-29

27 Northem Union Pacific is planning to is ue 10-year 10% semiannual interest bonds with a par value of $200,000. Required: Prepare the necessary journal entry under each of the following assumptions. a. The bonds are sold on issuance date at par. b. The bonds are sold on issuance date at 96. c. The bonds are sold on issuance date at 103. 28) On January 1, Solutions Online issued $500 000 8%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1.Journalize the following entries: a. Issued the bonds. b. Paid first semiannual interest payment. c. Retired the bonds at maturity EXTRA CREDIT PROBLEM 29) On July 1, Ball Computer Corporation issued 10-year, 12% $100,000 bonds for 98 Prepare the journal entries to record: a. Issuance of the bond. b. First semiannual interest period payment including the amortization of the discount using the straight-line method