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1.) Precision Optical issued 360 bonds at 96 on January 1^st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31^st. The company follows the straight-line method for bond amortization.

Prepare ALL necessary journal entries for Precision Optical for 1/1/2020 (6 points)

(MULTIPLE CHOICE)

a.) DR Cash 345,600

DR Discount on Bonds Payable 14,400

CR Bonds Payable 360,000

B.) DR Cash 34,560

DR Discount on Bonds Payable 1,440

CR Bonds Payable 36,000

c.) DR Bonds Payable 345,600

DR Discount on Bonds Payable 14,400

CR Cash 360,000

d.) DR Bonds Payable 34,560

DR Discount on Bonds Payable 1,440

CR Cash 36,000

e.) DR Cash 360,000

CR Discount on Bonds Payable 14,400

CR Bonds Payable 345,600

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2.) (Choose one, Multiple choice)

Precision Optical issued 360 bonds at 96 on January 1^st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31^st. The company follows the straight-line method for bond amortization.

Prepare ALL necessary journal entries for Precision Optical for 12/31/2020.

Question 12 options:

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3.) (MULTIPLE CHOICE)

Precision Optical issued 360 bonds at 96 on January 1^st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31^st. The company follows the straight-line method for bond amortization.

Prepare ALL necessary journal entries for Precision Optical for 12/31/2021 (8 points)

A.) DR Interest Expense 2,340

CR Cash 1,620

CR Discount on Bonds Payable 720

DR Bonds Payable 36,000

CR Cash 36,000

B.) DR Interest Expense 23,400

CR Cash 16,200

CR Discount on Bonds Payable 7,200

DR Bonds Payable 360,000

CR Cash 360,000

C.) DR Cash 23,400

CR Interest Expense 16,200

CR Discount on Bonds Payable 7,200

DR Cash 360,000

CR Bonds Payable 360,000

D.) DR Cash 2,340

CR Interest Expense 16,20

CR Discount on Bonds Payable 720

DR Cash 36,000

CR Bonds Payable 36,000

E.) DR Interest Expense 16,200

DR Discount on Bonds Payable 7,200

CR Cash 23,400

DR Bonds Payable 36,000

CR Cash 36,000

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