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Bonds Issued at Face Value (LO2) Ramona Arroyo Co. issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination
Bonds Issued at Face Value
(LO2) Ramona Arroyo Co. issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate: April 1, 20-1 $250,000 100 $5,000 10 years 9%, payable semiannually on September 30 and March 31 Required Prepare journal entries for: a. Issuance of the bonds. b. Interest payment on the bonds on September 30, 20-1. c. Year-end adjustment on the bonds for 20-1. d. Reversing entry for the beginning of 20-2. e. Interest payments on the bonds for 20-2 (March 31 and September 30)Step by Step Solution
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