"There are three problems this week. Click on the tabs at the bottom of the spreadsheet to access each one. On 1/1/2015, Starburst Company issued 10-year bonds with a face value of $500,000 at 102.The bonds carry a stated interest rate of 7%, with interest payable semi-annually on January 1 and July 1.Starburst uses the straight-line method of amortizing bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds (b) Prepare the journal entry to record payment of interest on July 1, 2015.(c) Prepare the adjusting entry to record the accrual of interest on December 31, 2015 (d) Prepare the balance sheet presentation for the bond on 12/31/2015 (e) Prepare the balance sheet presentation for the bond on 12/31/2016 Solutions: Date Account Debit 01-01-2015 Cash 5,10,000 Premium on Bonds Payable Bonds Payable To record issue of 7% Bonds at Premium 01-07-2015 Interest Expenses17,000 Premium on Bonds Payable 500 Cash To record interest Expenses and payment 31-12-2015 Interest Expenses17,000 Premium on Bonds Payable 500 Interest Payable To record interest ExpensesStarburst Corporation Balance Sheet (Partial) 31-12-2015 Long Term Liabilities Bonds Payable 500000 Plus : Unamortized premium on bonds payable 9,000 Starburst Corporation Balance Sheet (Partial) 31-12-2016 Long Term LiabilitiesBonds Payable 500000 Plus : Unamortized premium on bonds payable 8,000There are three problems this week. Click on the tabs at the bottom of the spreadsheet to access each one. On 1/1/2015, Starburst Company issued 10-year bonds with a face value of $500,000 at 102.The bonds carry a stated interest rate of 7%, with interest payable semi-annually on January 1 and July 1.Starburst uses the straight-line method of amortizing bond premium or discount. Credit10,000 5,00,00017,500 17500 Starburst Corporation Balance Sheet (Partial) 31-12-2015 5,09,000 Starburst Corporation Balance Sheet (Partial) 31-12-20165,08,000Black, Inc. management occasionally invests idle cash in stocks which are not intended to be held long term. Management treats these investments as trading securities. 1-5-2015 Purchased 2,500 shares of Eversilver Corporation common stock which constitutes less than 10% of the outstanding shares of the company for $54.00 per share cash plus a total broker commission of $200. 6-15-2015 Received a cash dividend of $1.50 per share. 12-15-2015 Received a cash dividend of $1.60 per share. 12-31-2015 The market value of the stock is $60 per share as of year end and a commission of $200 would apply to sell the shares. 1-22-2016 Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission. Instructions: Prepare Journal entries for the above transactions. Date Account 5-1-2005 Trading Securities Commission Expenses Cash to record of purchase of shares of Eversilver Corporation @$54 per share and paid $200 as commisson 6-15-2015 Cash Dividend Income to record of dividend received $1.5 per Share 12-15-2015 Cash Dividend Income to record of dividend received $1.6 per Share 12-31-2015 Trading Securities Unrealised Gain on Investments to record gain of $ 6 per share 1-22-2016 Cash Brokerage Commission on sale of investment Trading Securities Gain on Investments to record of sale of investment $62 per share Black, Inc. management occasionally invests idle cash in stocks which are not intended to be held long term. Purchased 2,500 shares of Eversilver Corporation common stock which constitutes less than 10% of the outstanding shares of the company for $54.00 per share cash plus a total broker commission of $200. The market value of the stock is $60 per share as of year end and a commission of $200 would apply to sell the shares. Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission. Debit Credit 1,35,000 200 1,35,2003,750 3,7504,000 4,00015,000 15,000 61,880 12060,0002,000"