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Q1: On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds.

Q2:

A company is authorized to issue 800,000 shares of $6 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

March. 8	Sold 110,000 shares of common stock for $9 cash per share.
March 12	Exchanged 12,000 shares of common stock for equipment with a market value of $90,000.

Q3:

Use the following calendar-year information to prepare Ibrahim Company's statement of cash flows using the direct method:

Cash paid to purchase machinery	$ 124,000
Cash paid for merchandise inventory	220,000
Cash paid for operating expenses	280,000
Cash paid for interest	4,000
Cash received for interest	10,000
Cash proceeds from sale of land	100,000
Cash balance at beginning of year	15,000
Cash balance at end of year	77,000
Cash borrowed on a short-term note	25,000
Cash dividends paid	24,000
Cash received from stock issuance	57,000
Cash collections from customers	522,000

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