Harvard Inc. issues $4 million, 5-year, 8% bonds at 102, with interest payable on January 1. The

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Harvard Inc. issues $4 million, 5-year, 8% bonds at 102, with interest payable on January 1. The straight-line method is used to amortize bond premium.

a. Prepare the journal entry to record the sale of these bonds on January 1, 2022.

b. Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2022, assuming no previous accrual of interest.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119493631

9th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jul 11, 2019 07:32 AM

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Harvard Inc. issues $4 million, 5-year, 8% bonds at 102, with interest payable on January 1. The

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a Jan 1 Cash 102 X 4000000 4080000 Bonds Payable 4000000 Premium on Bonds Payabl...View the full answer

Financial Accounting Tools for Business Decision Making

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