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4. Bonds issued at a premium Aa Aa E Fields Co. issued a bond on January 1, 2011, that had a three-year maturity. The bond
4. Bonds issued at a premium Aa Aa E Fields Co. issued a bond on January 1, 2011, that had a three-year maturity. The bond had a face value of $100,000 and a contract rate of interest of 10%, which is paid annually. The bond's market interest rate is 8%, and its current selling price is $105,154. The company uses the straight-line method to amortize the discount or premium on its bonds Complete the following journal entries for Fields Inc. (the issuer) that record the following: (1) The bond issue on January 1, 2011 (2) The annual amortization of the bond discount or premium each year at December 31 combined with the annual interest payments (3) The final repayment of the bond principal Use Smart Entry when selection lists are not available. Hint Combine the semiannual amortization and semiannual interest payment journal entries for the x period into a single three-item compound journal entry. When the bond matures, record the amortization and interest payment first, and then record the payment of principal as a separate entry
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