Answer:
cash                   96,535 debit
discount on BP    3,465 debit
           Bonds Payable          100,000 credit
Explanation:
We need to determinate the price at which the bonds were issued:
Which is the present value of the coupon payment and maturity
 
  
Coupon payment: 100,000 x 10% / 2 =	5,000
time	4  (2 years x 2 payment per year)
rate	0.06  (12% annual / 2 = 6% semiannual)
 
  
PV	$17,325.5281  
  
  
  
 Maturity (face value)   $100,000.00  
 time   4.00  
 rate  0.06
  
  
 PV   79,209.37  
  
PV c	$17,325.5281  
PV m  $79,209.3663  
Total	$96,534.8944  
As the bonds are issued below face value there is a discount:
100,000 - 96,535 = 3,465
the entry will recognize the cash procceds and the creation of a liaiblity
we will also use an auxiliar account for the discount on the bonds
 
        
             
        
        
        
Accord According to the California Insurance Code, any individual who unwilfully takes part in an out of line strategy for rivalry is obligated to the state for a fine of up to $5,000 per infringement. In the event that the demonstration is resolved to be headstrong, the fine won't surpass $10,000 per act.
        
             
        
        
        
Answer:
Following are the solution to the given points:
Explanation:
For point 1:

For point 2:
 
For point 3:
 
For point 4:
 
For point 5:
 
For point 6:
 
For point 7:
 
For point 8:
