Metro Company purchased $500,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and January 1.  The market interest rate (yield) was 8% for bonds of similar risk and maturity.  The market value on December 31, 20x1 was $555,000 and all bonds were sold for $507,500 on January 1, 20x2 after the second payment. On the 1st schedule, how do you get to the $540,554 issue price of bonds (multiply times a PV factor?). And also the 525,000 & 354,671 amounts?

XYZ Corporation issued $20,000,000 of 5 year, 9% bonds on April 1 of the current year at face value, with interest payable semi-annually on April 1 and October 1. The bonds were issued at a market interest rate of 8%, resulting in XYZ Corporation receiving cash of $20,811,020. Journalize the entries to record the following transactions: Issuance of the bonds on April 1 Paid the first semi-annual interest on the bonds on October 1 Is the semi annual interest done as: 20,000,000*9%*1/2 = 4,50,000 or interest Expense Debit 720,000 [(20,000,000 x 9%)/2] Premium on Bonds Payable Debit 27,050 (amortization of premium) Cash Credit 747,050

On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elías records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is Oa. $455 Ob. $5,694 Oc. $5,460 Od. $2,340

On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.  Present entries to record the following transaction. (a) Issuance of bonds.