Problem 2: Zero Interest Bearing Note Jessica Jackson Corporation acquires machi

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Problem 2: Zero Interest Bearing Note Jessica Jackson Corporation acquires machinery from South Company in exchange for a $20,000 non-interest bearing, 5-year note on June 30, 2013. The note is due on June 30, 2018. The machinery has a fair value of $11,348.54, is subject to straight-line depreciation, and has an estimated life of 10 years (no residual value). JJ Corporation fiscal year ends December 31. Required: a) What is the effective interest rate on this note? b) Prepare journal entries on each of the following dates to record the preceding information for JJ Corporation. 1. June 30, 2013 2. December 31, 2013 3. December 31, 2014 Problem 3: Note Payable in Installments On January 1, 2013, Joseph Jackson Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2013. Required: a) What is the effective interest rate on this note? b) Prepare the journal entry to record the purchase of the equipment. c) Prepare an interest amortization table for the note using the effective interest method. d) Prepare the journal entries to record yearly interest expense and repayments over the life of the note. 1. December 31, 2013 2. December 31, 2014 3. December 31, 2015 ? Problem 4: Bond Entries On August 1, 2012, Randall Jackson Co. sells $4,000,000 of 10% bonds dated June 1, 2012 for 93.7902. The bonds yield 12%. Legal and other costs of $32,000 were incurred in connection with the issue. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2016. The bonds are callable at 102. On October 1, 2013, RJ Co. buys back $1,200,000 worth of the bonds. The bond issue cost are being deferred and amortized on a straight-line basis over the life of the bond. The discount on the bond is also being amortized on a straight-line basis over the life of the bond. (Straight-line is not materially different in effect from the preferable effective interest method). Required: a) Prepare all necessary and appropriate journal entries on the following dates: 1. August 1, 2012 2. December 1, 2012 3. December 31, 2012 4. June 1, 2013 5. October 1, 2013 6. December 1, 2013

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multiple questions are not allowed in a single post. Also the question is all mixed up and difficult to read. please break the question into few parts and re post. Thanks!

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