Please look at all tabs, need help in problems 1, 2, and 3. Thank you!

There are three problems this week. Click the tabs at the bottom of the spreadsheet to access each one. On 1/1/2015, Starburst Company issued 10-year bonds with a face value of $500,000 at 102. The bonds carry a stated interest rate of 7%, with interest payable semi-annually on January 1 and July 1. Starburst uses the straight-line method of amortizing bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (b) Prepare the journal entry to record payment of interest on July 1, 2015. (c) Prepare the adjusting entry to record the accrual of interest on December 31, 2015. (d) Prepare the balance sheet presentation for the bond on 12/31/2015. (e) Prepare the balance sheet presentation for the bond on 12/31/2016. Solutions: Date Account 1/1/2015 Credit Cash Bonds Payable Premium on Bonds Payable 7/1/2015 Debit Interest Expense Cash Note that it would also be correct to combine the tw Premium on Bonds Payable Interest Expense 12/31/2015 - Note that it would also be correct to combine the tw Interest Expense Interest Payable Premium on Bonds Payable Interest Expense Starburst Corporation Balance Sheet (Partial) 12/31/2015 Long Term Liabilities Bonds Payable Add: Premium on Bonds Payable Starburst Corporation Balance Sheet (Partial) 12/31/2016 Long Term Liabilities Bonds Payable Add: Premium on Bonds Payable 500 e the two entries into one. e the two entries into one. Black, Inc. management occasionally invests idle cash in stocks that are not intended to be held long term. Management treats these investments as trading securities. 1/5/2015 Purchased 2,500 shares of Eversilver Corporation common stock, which constitutes less than 10% of the outstanding shares of the company for $54.00 per share cash plus a total broker commission of $200. 6/15/2015 12/15/2015 12/31/2015 1/22/2016 Received a cash dividend of $1.50 per share. Received a cash dividend of $1.60 per share. The market value of the stock is $60 per share as of year end, and a commission of $200 would apply to sell the shares. Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission. Instructions: Prepare Journal entries for the above transactions. Solutions: Date 1/5/2015 7/15/2015 12/15/2015 12/31/2015 1/22/2016 Account Debit Credit Trading Securities Cash - Cash Dividend Revenue - Cash Dividend Revenue - $0.00 cost per share with commiss You would need this information if you sold $0.00 updated carrying value per s Trading Securities Unrealized Gain on Trading Securities - Cash Trading Securities Realized Gain on Trading Securities - mmission. you sold less than all shares later. e per share. White Corporation acquired 50,000 shares of the outstanding common stock of Gold Company for $12.00 per share. The following events occurred during the year. 6/15/2015 12/10/2015 12/31/2015 Gold declared and paid $0.50 per share cash dividend. Gold declared and paid $0.55 per share cash dividend. Gold reported net income for the year of $325,000. The market price of Gold common stock was $25 per share on the last day of the year. Instructions: (a) Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted less than 10% of Gold's outstanding shares. White treats this investment as available-for-sale securities. (b) Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted 30% of Gold's outstanding shares. Solutions: Date 1/1/2015 6/15/2015 12/10/2015 12/31/15 Account Less than 10% ownership: Available-for-sale Securities Cash Debit Credit 600,000 600,000 Cash Dividend Revenue 25,000 Cash Dividend Revenue 27,500 Available-for-sale Securities Unrealized Gain on Available-for-sale Securities 25,000 27,500 650,000 650,000 30% ownership: 1/1/2015 6/15/2015 12/10/2015 12/31/2015 Investment in Gold Company Cash 600,000 600,000 Cash Investment in Gold Company 25,000 Cash Investment in Gold Company 27,500 Investment in Gold Company Income from Gold Company (30% x 325,000) 97,500 25,000 27,500 97,500