On January 1, 2023, ABC Corporation sold a $10 million, 8.25 percent bond issue. The bonds...

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On January 1, 2023, ABC Corporation sold a $10 million, 8.25 percent bond issue. The bonds were dated January 1, 2023, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Required: 1. Calculate the issue price. (2 Marks) 2. Complete the chart below. (5 Marks) Date Jan. 1, 2023 Cash Payment Interest Expense Premium Amortization Carrying Value Dec. 31, 2023 Dec. 31, 2024 3. Prepare the journal entry to record the issuance of the bonds. (2 Marks) Date Account Cash Bond payable Dr. Cr. $10,000,000 $10,000,000 4. Prepare the journal entry to record the interest payment on December 31, 2023. Use effective-interest amortization. (2 Marks) Date Account 01-Dec Interest expense Bond payable cash Dr. Cr. 5. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for 2023. (4 Marks) On January 1, 2023, ABC Corporation sold a $10 million, 8.25 percent bond issue. The bonds were dated January 1, 2023, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Required: 1. Calculate the issue price. (2 Marks) 2. Complete the chart below. (5 Marks) Date Jan. 1, 2023 Cash Payment Interest Expense Premium Amortization Carrying Value Dec. 31, 2023 Dec. 31, 2024 3. Prepare the journal entry to record the issuance of the bonds. (2 Marks) Date Account Cash Bond payable Dr. Cr. $10,000,000 $10,000,000 4. Prepare the journal entry to record the interest payment on December 31, 2023. Use effective-interest amortization. (2 Marks) Date Account 01-Dec Interest expense Bond payable cash Dr. Cr. 5. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for 2023. (4 Marks)