1-Novak Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable semiannually. At...

1-Novak Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. Issue price of the bonds $

2-The Sheffield Company issued $320,000 of 8% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value.

Prepare Sheffield’s journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.

3-On January 1, 2017, Teal Corporation redeemed $480,000 of bonds at 96. At the time of redemption, the unamortized premium was $14,400.

Prepare the corporation’s journal entry to record the reacquisition of the bonds.

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