ACC 302/502Homework #1 (Y)1.On January 1, 2015, Fennis Company issued its 12% bonds in the face amount of $3,000,000,which mature on January 1, 2025. The bonds were issued for $3,368,665 to yield 10%. Fennisuses the effective-interest method of amortizing bond premium. Interest is payable annually onDecember 31. At December 31, 2016, the adjusted unamortized bond premium should beAnswer$_______________2.On July 1, 2016, Pillar Company issued 6% bonds in the face amount of $5,000,000, whichmature on July 1, 2022. The bonds were issued for $4,537,714 to yield 8%. Pillar uses theeffective-interest method of amortizing bond discount. Interest is payable annually on June 30.At June 30, 2019, the unamortized bond discount should beAnswer$________________3.The Whittier Company issues $100,000, 10% bonds at 108 on September 1, 2017. The bondsare dated January 1, 2016 and mature ten years from that date. Straight-line amortization isused. Interest is paid annually each December 31. Compute the bond carrying value as ofDecember 31, 2022.Answer$_______________4.At December 31, 2017, the following balances existed for Sweeney Corporation:Bonds Payable (10%)Premium on Bonds Payable$1,500,000120,000The bonds mature on 12/31/27. Straight-line amortization is used.If 60% of the bonds are retired at 104 on January 1, 2019, what is the gain on earlyextinguishment?Answer$_______________Required:G:Fac_supportBERSCHBKACC_302_502HomeworkHomework_1ACC_302_502_Homework_1_Y_online.docx4/12/161Compute the answer for each of the four problems. Show supporting computation. No need to showquestions.SUBMISSION INFORMATION:Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, andHomework #1 in the upper left corner.Submit your assignment through the upload feature within Moodle. Assignments should not beemailed to the instructor. PLEASE BE SURE YOUR ASSIGNMENT IS ACTUALLY SUBMITTED ANDNOT IN “DRAFT” STATUS. There is a requirement to click a box to acknowledge the submissionis your original work to complete the submission process.G:Fac_supportBERSCHBKACC_302_502HomeworkHomework_1ACC_302_502_Homework_1_Y_online.docx4/12/162