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Exercise 10.10 Accounting for Bonds Issued at a Discount: Issuance, Interest Payments, and Retirement L.O. 5, 6 Mellilo Corporation issued $5,400,000 of 20-year, 9.5 percent

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Exercise 10.10 Accounting for Bonds Issued at a Discount: Issuance, Interest Payments, and Retirement L.O. 5, 6 Mellilo Corporation issued $5,400,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) Debit Credit Date July 1, 2013 7 General Journal (Click to select) (Click to select) (Click to select) b. Prepare the journal entry at December 31, 2013, to pay interest and amortize the bond discount. (Omit the "$" sign in your response.) Debit credit Date Dec. 31, 2013 General Journal (Click to select) (Click to select) (Click to select) 7 c. Prepare the journal entry at June 30, 2033, to pay interest, amortize the bond discount, and retire the bonds at maturity. (Omit the "$" sign in your response.) Debit Credit Date June 30, 2033 General Journal (Click to select) (Click to select) (Click to select) June 30, 2033 (Click to select) (Click to select)

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