Question: Answer two of the following three Problems Problem 1 Company: XYZ Company Date of bonds: January 1, 2019 Term: 4 years Face (Par) Value: $1,000

Answer two of the following three Problems

Problem 1

Company: XYZ Company

Date of bonds: January 1, 2019

Term: 4 years

Face (Par) Value: $1,000

Stated interest rate: 10%

Effective interest rate: 12%

Interest payment dates on January 1 and July 1

1.Compute the market price of the bonds and journalize the issuance of the bonds.

2. Prepare a schedule to amortize the premium or discount using the effective interest method of amortization for the first year and journalize the entries to record the interest payment on July 1, 2019 and January 1 2020.

3. Interest expense for the year ended December 31, 2019 is $______________.

Answer two of the following three Problems Problem 1 Company: XYZ Company Date of bonds: January 1, 2019 Term: 4 years Face (Par) Value: $1,000 Stated interest rate: 10% Effective interest rate: 12% Interest payment dates on January 1 and July 1 1. Compute the market price of the bonds and journalize the issuance of the bonds. 2. Prepare a schedule to amortize the premium or discount using the effective interest method of amortization for the first year and journalize the entries to record the interest payment on July 1, 2019 and January 1 2020. 3. Interest expense for the year ended December 31, 2019 is $

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