d

During Year 1 and Year 2, Agatha Corporation completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. Year 1 January 1 Issued $310,000 of 10-year, 6 percent bonds for $298,000. The annual cash payment for interest is due on December 31. December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December 31 Closed the interest expense account. Year 2 December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December31 Closed the interest expense account. Required a-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? a-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? b. Prepare the liabilities section of the balance sheet at December 31, Year 1…

Required Information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City Issues $380,000 of 8% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year. Assuming the market Interest rate on the issue date is 9%, the bonds will issue at $349,051. 2. How will the bond Issuance on January 1, 2024, affect the financial statements? 3. How will the first two semiannual Interest payments on June 30, 2024, and December 31, 2024, affect the financial statements? Complete this question by entering your answers in the tabs below. Req 2 Req 3A Assets Req 38 How will the bond issuance on January 1, 2024, affect the financial statements? Note: Amounts to be deducted should be indicated by a minus sign. Balance Sheet Liabilities Stockholders' Equity Common Stock Retained Earnings Revenues Income Statement Expenses Net Income

City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption of bonds. During the first year, the fund earns $1,475. When the bonds mature, there is a sinking fund balance of $612,000, and $600,000 is needed to redeem the bonds. ​ Required:Prepare the following general journal entries. a. The initial sinking fund deposit. b. The first year's earnings. c. The redemption of the bonds. d. The return of excess cash to the corporation.