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Caprio Inc. sells $500,000 of 10% bonds on June 1, 2015. The bonds pay interest on December 1 and June 1. The due date of
Caprio Inc. sells $500,000 of 10% bonds on June 1, 2015. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1,2020. The bonds yield 8%. On October 1,2016, Caprio buys back $200,000 (face value) of bonds for $210,000 in cash (not including accrued interest which was paid separately - also in cash). Provide the following: a. The present value of the bond payable is S on June 1, 2015. Round to the nearest dollar. b. Give all journal entries for: 6/1/15 12/1/15 12/31/1 6/1/16 10/1/16 Update 10/1/16 accrued interest payment 10/1/16 redemption
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