Q1: North Company issued $80 million of 12%, 10-year bonds on January 1. Interest is payable semiannually on June 30 and December 31. The bonds were sold to an underwriting group at 105. South Company...

Extracted text: Q1: North Company issued $80 million of 12%, 10-year bonds on January 1. Interest is payable semiannually on June 30 and December 31. The bonds were sold to an underwriting group at 105. South Company issued $80 million of 11%, 10-year bonds on January 1. Interest is payable semiannually on June 30 and December 31. The bonds were sold to an underwriting group at 95. Prepare journal entries to record all transactions during the year for (a) The North Company bond issue. (b) The South Company bond issue. Assume that both companies amortize bond discount or premium by the straight-line method at each interest payment date.