You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous years journal entries, shown as follows:

Journal Entries, Year 1

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GENERAL JOURNAL

ACCOUNTING EQUATION

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Jan. 1	Cash		1,062,060.00		?
2		Premium on Bonds Payable			62,060.00		?
3		Bonds Payable			1,000,000.00		?
4	Jun. 30	Interest Expense		19,397.00				?
5		Premium on Bonds Payable		3,103.00			?
6		Cash			22,500.00	?
7	Jul. 1	Cash		1,921,280.00		?
8		Discount on Bonds Payable		78,720.00			?
9		Bonds Payable			2,000,000.00		?
10	Dec. 31	Interest Expense		19,397.00				?
11		Premium on Bonds Payable		3,103.00			?
12		Cash			22,500.00	?
13	31	Interest Expense		41,560.00				?
14		Discount on Bonds Payable			6,560.00		?
15		Cash			35,000.00	?
16	31	Income Summary		80,354.00				?
17		Interest Expense			80,354.00

Review the journal entries on the SpringFit Corporation panel, then answer the following questions.

1.	Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2
2.	Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. July 1
3.	How much interest was paid during the year on the bonds in question (2)?
4.	What is the carrying amount of the bonds in question (2) at the end of the year?
5.	Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1
6.	How much interest was paid during the year on the bonds in question (5)? $45,000
7.	Assuming that straight-line amortization is used for the bonds in (5), what is the bond life? 10 years
8.	What is the carrying value of the bonds in question (5) at the end of the year?