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E 7 - 3 5 . LO 3 , 4 : Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the
E LO: Analyzing and Reporting Financial Statement Effects of Bond Transactions
On January of the current year, Banek Inc. issued $ of nineyear bonds for $ which implies a market yield rate of Semiannual interest is payable on June and December of each year.
Required:
a Show computations to confirm the bond issue price.
b Indicate the financial statement effects using the template for:
i bond issuance,
ii semiannual interest payment and discount amortization on June of the current year,
iii semiannual interest payment and discount amortization on December of the current year
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