Bond Issue

on january 1 2014 united ten inc UTI issues $5,000,000 of bonds with an interest rate of 3%. the term of the bonds is 10 years and interest is paid ANNUALLY. The annual market rate of interest is 2%.

 

Determine the bonds proceeds on january 1 2014$____________

 

Was the bond issued at a premium or discount or at par value?____________

 

if applicable What was the amount of the premium or discount?__________

 

Prepare the journal entry in proper form, to reflect the issuance of the bond on jauary 1 2014.______

 

Prepare journal entry to record interest expense(assume that the interest was paid on this day as well) on December 31 2016

 

Prepare balance sheet presentation for UTI long term liabilities as of December 31 2014. UTI issues 5,000,000 of bonds with interest rate of 6% term of bond is 8 years. Paid SEMI ANNUALLY. Annual market rate of interest is 8%.

 

Prepare the journal entry to record the interest expense(assume that the interest was paid on this date as well) on june 30 2014.