Ripkin Company issues 9%, five-year bonds dated January 1, 2016, with a $320,000 par value. The bonds

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Ripkin Company issues 9%, five-year bonds dated January 1, 2016, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market rate is 8% on the issue date.

Required

1. Compute the total bond interest expense over the bonds' life.

2. Prepare a straight-line amortization table like Exhibit 10.11 for the bonds' life.

3. Prepare the journal entries to record the first two interest payments?

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Financial Accounting Information for Decisions

ISBN: 978-1259533006

8th edition

Authors: John J. Wild

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Question Posted: Feb 23, 2017 01:46 AM

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Ripkin Company issues 9%, five-year bonds dated January 1, 2016, with a $320,000 par value. The bonds

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Part 1 Ten payments of 14400 144000 Par value at maturity 320000 Total repaid 464000 Less amount bor...View the full answer

Financial Accounting Information for Decisions

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