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24) On March 1 20x2, Mozart Co. issued $700,000 of 10% bonds to yield 7.5%. Interest is payable semiannually on February 28 and August 31.
24) On March 1 20x2, Mozart Co. issued $700,000 of 10% bonds to yield 7.5%. Interest is payable semiannually on February 28 and August 31. The bonds mature in 10 years. Mozart is a calendar-year corporation. Mozart is not an investor, but an investee (bond issuing company). Required: 1) Determine the price of the bonds at March 1, 20x2. No credit if no explanation about how you compute this. Issue price of bond = | 2) Prepare the journal entries to record bond-related transactions as of the following dates: (a) March 1, 20x2 (b) August 31, 20x2 (c) December 31, 20x2 (adjusting entry, so no cash payment)
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