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1a.

On April 30, 2016, Alpha Company issued $150,000 of 9%, 10-year bonds. The bonds were issued at par plus accrued interest and are dated January 1, 2016. Interest is paid on July 1 and January 1. Use this information to prepare the General Journal entry (without explanation) for the April 30, 2016 issue of the bonds. If no entry is required then write "No Entry Required."

General Journal:

Date	Accounts	Debit	Credit
4/30/16

1b.

Alpha Corporation issued $100,000 of 12%, 15-year bonds on June 1, 2016 (dated April 1 2016) at 101 plus accrued interest, which is paid on April 1 and October 1.

Use this information to prepare the General Journal entry (without explanation) to record the June 1, 2016 bond issue. If no entry is required then write "No Entry Required."

General Journal:

Date	Accounts	Debit	Credit
6/1/16

1c.

On August 1, 2016, Alpha Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $50,000. The annual interest rate implicit in the lease was 9%, and the first lease payment of $2,000 is due at the end of each month of the lease. Use this information to prepare the General Journal entry (without explanation) for the August 31, 2016 monthly lease payment. If no entry is required then write "No Entry Required." (Round your answer to the nearest whole dollar.)

1d.

Alpha company purchased a bond investment on January 1, 2017. The bonds have a par of $10,000, pay interest at a 4% annual rate and have 5 years until maturity. What is the total Interest Income that will be reported over the life of the bond investment if the bonds were purchased at 102 and Alpha uses the straight line amortization method?

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