1.Alice, sam, and Carlos Co take advantage of a well-known

1.Alice, sam, and Carlos Co take advantage of a well-known office furnishing store’s low-interest rate financing. Alice, Sam, and Carlos Co buy furniture on the first day of its fiscal year, signing a $10,000, three-year bond. The bond is payable in full at maturity. Interest is payable annually at 2%. The market rate of interest for similar transactions is 4%. At issuance, Alice,Sam and Carlos Co will record a debit to office furniture and a credit to bonds payable for how much?

2.A company calls its bonds before maturity and redeems them. The trial balance accounts pertaining to bonds at the date of call follow: Face value – $800,000 Netbook value/carrying amount – $776,000 Redemption price – $808,000 Prepare the journal entry