38) Scooters Doll Flower Company on July 1 issued 10%, $600,000 bonds for $564,149. This price will yield a market rate of 11%. Interest dates are June 30 and December 31. Prepare the journal entries to record:

a. Issuance of the bond.

b. Payment for the first semiannual interest period plus amortization of the discount using the interest method.

c. Payment for the second semiannual interest period plus amortization of the discount using the interest method.

39) On July 1, Carly Corporation issued 10-year 9%, $600,000 bonds for $640,771, a price to yield 8% market rate. Interest dates are June 30 and December 31. Record the following journal entries:

a. Issuance of the bonds.

b. The semiannual interest payment and amortization of the premium on December 31 using the interest method.

40) Northern Union Pacific is planning to issue 10-year, 10% semiannual interest bonds with a par value of $200,000.

Required: Prepare the necessary journal entry under each of the following assumptions.

a. The bonds are sold on issuance date at par.

b. The bonds are sold on issuance date at 96.

c. The bonds are sold on issuance date at 103.



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