Problem 1 Issue Bonds at Par A B Corp issues $1,000,000 of 6%, 20-Yr bonds. Interest payment dates were Jan. 1 and July 1. . Market rate = 6%. Prepare journal entries for the issuer. 5 Use the effective interest method. 7 a. Sale on Jan. 1 for 100 3 b. July 1 entry 9 C. Jan 1 entry. 10 d. July 1 entry. 11 B Adjustment for fiscal year ending on Sept. 1 (2 Months only) 12 Problem 2 Issue Bonds at Discount 13 A On Jan. 1, 1995, T Company issued $100,000 of 10-year, 8% bonds at "93.5", an effective interest rate 14 of 9%. Interest is payable on January 1 and July 1. 15 Use the effective interest method. 16 Sale on Jan 1 for $93,500. 17 b. July 1 entry. 18 Jan 1 entry. 19 d. July 1 entry. 20 B Adjustment for fiscal year ending on Oct. 1 a. C. PR 2 METHENEY Inmr and Problems 5 and 6 H21B +