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(3) Prepare journal entries on each of the following dates. (14 points) a) 01/01/2017 17. On January 01, 2017, ASU Corporation issued $100,000 face-value bonds,
(3) Prepare journal entries on each of the following dates. (14 points) a) 01/01/2017 17. On January 01, 2017, ASU Corporation issued $100,000 face-value bonds, with 5% interest payable at the end of year, that are due in 3 years. The current market interest rate for the bonds of the same rating is 7%. (1) Using the tables given, compute the selling price of the bonds as of January 01, 2017. (5 points) b) 12/31/2017 (2) Complete the following amortization schedule using effective-interest method. (13 points) c) 12/31/2018 schedule of Bond Discount Amortization 3-Year, 5% Bonds Sold to Yield 7% Date Cash Interest Paid Interest Expense Bond Discount Amortization 1/1/2017 12/31/2017 12/31/2018 12/31/2019 Carrying Value of Bonds d) 12/31/2019
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