W . Required the market interesel e coupon rate on the boat Expl Prepare the journal entry to b e Explain to an increase in maniera dig (1) Jones Company (2) The original bondholders who the bonds during (3) Investors who purchase the bonds during 2006 E 12-3 On 1 On January 1, 2004. AL. Corporation issues a Sopond with a con The bond matures five years from the date of the band we toc turn to investors, selling for $9.2014) Required: Prepare the journal entry to record the sale of the bond on January 1.2004 b. How will the bond be presented on Alls balance sheet on January 1, 2002 c. Prepare the entry to record the first coupon payment on December 31, 2004 What will be the economic value of the bond on December 31, 2004, wming no change in market interest rates? e. How will the bond be presented on the balance sheet on December 31, 20042 What will be the amount of the net bond liability on December 31, 2005, the day be fore the bond matures? Prepare the entry that will be made on January 1, 2009, the maturity date of the bond. E12-4 On January 1, 2004, P.J. Corporation issues a $5,000 bond with a 6% coupon. The bond matures in five years. The bond is issued to yield a 5% return to investors, selling for $5,216.49. Required: a. Prepare the journal entry to record the sale of the bond on January 1, 2004. b. How will the bond be presented on P.J's balance sheet on January 1, 2004? c. Prepare the entry to record the first coupon payment on December 31, 2004