I. Metro Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1 when the market yield was 8.75%. Interest is payable on June 30 and January 1. The market value on December 31, 20x1 was $107,500 and all bonds were sold for $110,000 on January 1, 20x2 before the scheduled payment was made. Required: 1. Using the Excel, compute the purchase price of the bonds on January 1, 20x1. 2. Using the Excel, prepare the amortization schedule for 5 years. 3. Prepare the journal entry on January 1, 20x1, June 30 20x1 and December 31, 20x1. 1) January 1, 20x1 (investment) 2) June 30, 20x1 (cash receipt) 3) December 31, 20x1 (adjusting entry for accrued interest). You must prepare this adjusting entry before the entry for the market value adjustment below. 4. Prepare the journal entry for the market value adjustment (if any) on December 31, 20x1 and sales on January 1, 20x2, assuming the bond investment is classified as: (Available-for-Sales Security) 1) December 31, 20x1 (market value adjustment, if any) 2) January 1, 20x2 (sales) (Trading Security) 1) December 31, 20x1 (market value adjustment, if any) 2) January 1, 20x2 (sales) (Held-to-Maturity Security) 1) December 31, 20x1 (market value adjustment, if any) 2) January 1, 20x2 (sales)

II. Broncos Company leased equipment from Denver-Tech Leasing on January 1, 2023. Other information: Lease term 5 years Annual payments $25,000 on January 1 each year (The first lease payment is made on January 1, 2023 on the lease contract day)/ Life of asset 5 years Implicit interest rate 7.25% There is no expected residual value. Required: 1) Compute the present value of the lease payments for the right-of-use asset. 2) Prepare the lease amortization schedule for 5 years. 3) Prepare appropriate journal entries for Broncos (lessee under finance lease) for 2023. Assume straight-line amortization and a December 31 year-end. Round your answers to the nearest whole dollar amounts.