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*P11.6 (LO 2,5) Writing On January 1, 2020, Jade SA issued 2,000,000 face value, 7%, 10-year bonds at 2,147,202. This price resulted in a 6% effective interest rate on the bonds. Jade uses the effective- interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. Instructions a. Prepare the journal entries to record the following transactions. 1. The issuance of the bonds on January 1, 2020. 2. Accrual of interest and amortization of the premium on December 31, 2020. 3. The payment of interest on January 1, 2021. 4. Accrual of interest and amortization of the premium on December 31, 2021. b. Show the proper non-current liabilities statement of financial position presentation for the bond liability at December 31, 2021. c. Provide the answers to the following questions in narrative form. (exclude part 2) 1. What amount of interest expense is reported for 2021? 7 Would the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? P12.7 (LO 3,4) On January 1, 2020. Primo plc had the following equity accounts. Share Capital-Ordinary (10 par value, 75,000 shares issued and outstanding) 750,000 Share Premium-Ordinary 200,000 Retained Earnings 540,000 During the year, the following transactions occurred. Jan. 15 Declared a 2 cash dividend per share to shareholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% share dividend to shareholders of record on April 30, distributable May 15. On April 15, the market price of the shares was 15 per share. May 15 Issued the shares for the share dividend. July 1 Announced a 2-for-I share split. The market price per share prior to the announcement was 15. (The new par value is 5.) Dec 1 Declared a 0.60 per share cash dividend to shareholders of record on December 15, payable January 10, 2021. 31 Determined that net income for the year was 260,000. Instructions a. Journalize the transactions and the closing entries for net income and dividends. b. Enter the beginning balances, and post the entries to the equity accounts. (Note: Open additional equity accounts as needed.) c. Prepare an equity section at December 31. PF.2 (LO2) At the end of its first year of operations on December 31, 2020, LWC Company's accounts show the following amounts in thousands). Partner Drawings Capital A. Lingyu 23,000 48.000 J. Woo 14.000 30,000 K. Cheng 10,000 25,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions a. Journalize the entry to record the division of net income for the year 2020 under each of the follow- ing independent assumptions. 1. Net income is X30,000. Income is shared 6:3:1. 2. Net income is 440.000. Lingyu and Woo are given salary allowances of 15,000 and 10,000, respectively. The remainder is shared equally. 3. Net income is 19.000. Each partner is allowed interest of 10% on beginning capital balances. Lingyu is given a 15,000 salary allowance. The remainder is shared equally. b. Prepare a schedule showing the division of net income under assumption (3) above. c. Prepare a partners' capital statement for the year under assumption (3) above