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FINANCIAL ACCOUNTING II The Koff - Dropze Pharmaceutical Corp. has a fiscal year that ends on December 3 1 st The company acquired a bond

FINANCIAL ACCOUNTING II
The Koff-Dropze Pharmaceutical Corp. has a fiscal year that ends on
December 31 st
The company acquired a bond indenture that authorized $1,500,000 of
callable, mortgage bonds, effective April 1,2023. The bonds were secured
by property and equipment with a market value of $2,000,000.
The bonds paid interest at a stated rate of eight percent and had an
expected term of six years. Interest was due and payable to bondholders
each September 30th and March 31st.
On July 1,2024, Koff-Dropze issued 1,000 of the bonds and received
a cash payment in the total amount of $906,000(which included interest
accrued to date).
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On October 1,2026, Koff-Dropze called the bonds and paid the current
bondholders anyinterest accrued to date, plus an additional $1,150,000 in
cash.
Provide only the following journal entries that the Koff-Dropze
Pharmaceutical Corp. made relating to the bonds:
The entries made during the period April 1,2023 through December
31,2024.
The entry that was recorded when the bonds were redeemed on
October 1,2026
Remember that any balance remaining in an unamortized premium or
discount account must also have been closed when the bonds were
redeemed.
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