1. On January 1, 2020, Luna’s Feather Pillows, Inc borrowed $100,000 at 6%. The loan is due December 31, 2020. Record, in good form, all the journal entries related to this borrowing.

2. On January 1, 2020, Luna borrowed $250,000 at 8% by issuing a note. The note matures on December 31, 2021. Record, in good form, all the journal entries related to this borrowing.

The fiscal year is a calendar year.

3. On January 1, 2021, Luna’s Feather Pillows, Inc. issued 8% bonds dated January 1, with a face amount of $800,000. The bonds mature on December 31, 2024 (4 years) and pay interest annually. The market yield for bonds of similar risk and maturity was 8% when the bonds were issued. Prepare, in good form, all the journal entries and amortization schedules for the bonds.

4. On January 1, 2021, Luna’s Feather Pillows, Inc. issued 8% bonds dated January 1, with a face amount of $800,000. The bonds mature on December 31, 2025 (5 years) and pay interest annually. The market yield for bonds of similar risk and maturity was 12% when the bonds were issued. Prepare, in good form, all the journal entries and amortization schedules for the bonds.

5. On January 1, 2021, Luna’s Feather Pillows, Inc. issued 8% bonds dated January 1, with a face amount of $800,000. The bonds mature on December 31, 2025 (5 years) and pay interest semi-annually. The market yield for bonds of similar risk and maturity was 6% when the bonds were issued. Prepare, in good form, all the journal entries and amortization schedules for the bonds.

Answer rating: 100% (QA)

A B C D E 1 Date Account Titles Debit S Credit 2 01Jan20 Cash 100... View the full answer