Prepare the general journal entry to record the issuance

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Q1. On January 1, 2016 Saturn, Inc. issued $300,000 of 9%, 5-year bonds. The bonds pay interest semiannually on June 30 and December 31. On the date of issue, the market rate was 10%. Use the Present Value Tables provided to compute the amount of cash Saturn will receive for the bonds. Round your computations to the nearest whole dollar. Prepare the general journal entry to record the issuance of the bonds.

Q2. A machine was purchased on January 3, 2011 for $54,800. Freight and installation costs for the machine were $2,500. The machine is depreciated using the straight-line method and had an estimated useful life of 10 years and an $1,000 salvage value. On January 4, 2017, it was determined that the machine would have a remaining life of 4 years and that the salvage value would only be $500. Record depreciation for the year ended December 31, 2017.

Reference no: EM133012079

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