On $\frac{1}{1}\frac{?}{2001},$ABCC. issued $$1,000,00010-$year bonds with a coupon rate of $8\%.$ Interests

$($Coupon$)$ are paid annually on $\frac{12}{31}.$

A$.$ Answer the following questions assuming that the market effective interest rate $($i$.$e$.,$ market

yield$)$ is $8\%.$ Feel free to use the present value tables or finance calculators. Show your

calculations.

Determine the selling price of the bond on the issue date.

Give the journal entry to record the bond issuance above on $\frac{1}{1}\frac{?}{2001}.$

How much is the interest expense for ABC Co$.$ for the fiscal year that ended $\frac{12}{31}\frac{?}{2001}?$

Give the journal entry to record the interest expense.

B$.$ Answer the following questions assuming that the market effective interest rate $($i$.$e$.,$ market

yield$)$ is $6\%.$ Show your calculations.

Determine the selling price of the bond on the issue date. Is it issued at a premium or

discount?

Give the journal entry to record the bond issuance above on $\frac{1}{1}\frac{?}{2001}.$

C$.$ Answer the following questions assuming that the market effective interest rate $($i$.$e$.,$ market

yield$)$ is $12\%.$ Show your calculations.

Determine the selling price of the bond on the issue date. Is it issued at a premium or

discount?

Give the journal entry to record the bond issuance above on $\frac{1}{1}\frac{?}{2001}.$