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1.On January 1, 20x2, Blue Inc. issued bonds for total cash proceeds of $171062. The bonds...

1.On January 1, 20x2, Blue Inc. issued bonds for total cash proceeds of $171062. The bonds pay interest semi-annually on June 30 and December 31, and have a coupon rate of 6.3%. Assume that the YTM for similar bonds on January 1, 20x2 is 8.1%.

In preparing the journal entry at June 30, 20x2, what would the debit to interest expense be?

2.After an especially booming year selling beavertails, you are looking to expand your store. To expand and renovate you will require a loan. After speaking with your good friend and wealthy businesswoman Karen, on January 1st 20x6 you both agree to a loan of $271679 as a note at 4.15%. You will pay Karen blended principal and interest payments of $40934 each December. With the payment on December 31st 20x6, how much of the principal are you paying off?

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