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Please answer all parts! 5a. On January 1, 2018, KLM Corp sells a...

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Accounting

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Please answer all parts!

5a. On January 1, 2018, KLM Corp sells a bond with face value $100.000 and coupon rate 12%. Interest is paid semi-annually. The bond matures in 5 years. ABC has a market interest rate of 10%. Show the journal entry for this sale. 5b. Assume the same info as above, except instead of receiving cash, KLM receives a unique asset (machine) with unknown fair value. Show the journal entry. 5c. Let's go back to the original problem of receiving cash (in question #5a). Show the journal entry for the second semiannual interest payment, made on December 31, 2018. Use the effective interest method. 5d. What is the carrying value of the bond that KLM will report on its December 31, 2018 balance sheet?

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