Question: please answer question 3 a b c and d parts 3. On January 1, 2018, Shirley Corporation issued 10% bonds dated January 1, 2018 with

please answer question 3 a b c and d parts 3.

please answer question 3 a b c and d parts

3. On January 1, 2018, Shirley Corporation issued 10% bonds dated January 1, 2018 with a face amount of $20 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: a. Determine the price of the bonds at January 1, 2018 b. Prepare the journal entry to record the bond issuance by Shirley on January 1, 2018 c. Prepare the journal entry to record interest on June 30, 2018 using the effective interest method. d. Prepare the journal entry to record interest on December 31, 2018 using the effective interest method. Fart B: The following questions are worth 10 points each. Show all of your work. 4. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Te manufactured the equipment at a cost of $90,000. Other information includes the following: LEASE TERM 3 YEARS YEAR

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