"Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2018, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2018, at 100 plus three months’ accrued interest." Required:

Prepare the necessary journal entries in general journal form on:
a. August 1, 2015, to record the issuance of the bonds.
b. November 1, 2015, to record the first semiannual interest payment on the bond issue.
c. December 31, 2015, to record interest expense accrued through year-end. (Round to the nearest dollar.)
d. May 1, 2016, to record the second semiannual interest payment. (Round to the nearest dollar.)
e. What was the prevailing market rate of interest on the date that the bonds were issued? Explain.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.