Question 24 On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312.177. The journal entry to record the issuance of the bond is: Debit Cash $312,177;credit Discount on Bonds Payable $12,177;credit Bonds Payable $300.000 ODebit Cash $300,000; debit Premium on Bonds Payable $12,177;credit Bonds Payabile $312177 Debit Bonds Payable $300,000; debit Bond Interest Expense $12.177.credit Cash $312.177 Debit Cash $312,177; credit Premium on Bonds Payable $12.177 credit Bonds Payabile $300 000 Debit Cash $312,177: credit Bonds Payable $312,177 Question 25 Kendall Corp. purchased at par value, $75,000 of Shrem Company's 8% bonds that mature in three years. The bonds pay interest semiannually on June 1 and December 1. Kendall plans to hold the bonds until they mature. When the bonds mature, Kendall should prepare the following journal entry (assume the semiannual interest was separately recorded) debit Long-Term Investments-HTM, $75,000; credit Cash,$75,000 debit Cash, $6,000; credit, Unrealized Gain-Equity,$6.000 debit Cash, $75,000; credit Debt Investments-HTM,$75,000 debit Unrealized Gain-Equity,$6,000; credit Cash, $6,000 debit Cash, $75,000; credit Long-Term Investments-Trading $75.000