Question Nike has decided to take on a new project to design protective equipment for essential workers in light of the COVID-19 pandemic, however, they quickly realized they will need additional funding to do so. On January 1, 2020 Nike Inc sold $5,000,000, five-year, 10% bonds for $5,100,000 (102% face value). Interest is payable annually on December 31. Questions: 1) Prepare the journal entry to record the issuance of this bond 2) What are the annual interest payments? 3) Is this bond issued at par, premium, or discount? ARITZIA Question Aritzia needs additional funding to expand their business into Men's clothing. On January 1, 2020 They decide to issue $1,000,000, five year, 12% bonds at 98 (98% face value). Aritzia receives $980,000 in cash and the market rate of interest at this time is 12.563%. Questions: 1) Prepare the journal entries for initial recognition on January 1, 2020 2) Prepare the journal entries to record interest expense in the second year on December 31, 2021 3) What is the bond carrying value on December 31, 2023