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Farmer Inc. issued $400,000 of 7%, 10-year, semiannual bonds payable on December 31, 2016. Farmer received cash of $372,660. The market rate was 8%. a.
Farmer Inc. issued $400,000 of 7%, 10-year, semiannual bonds payable on December 31, 2016. Farmer received cash of $372,660. The market rate was 8%.
a. Prepare a bond amortization table through the first 4 interest periods. (You do not have to prepare a table for all 10 years!)
b. Record the December 31, 2016, issuance of these bonds in a journal entry.
c. Record the June 30, 2017, interest payment in a journal entry.
d. Record the December 31, 2017, interest payment in a journal entry.
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