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FOR JOURNAL ENTRY: Record the bond issue on January 1, 2021. Record the semi-annual interest payment on June 30, 2021. Record the semi-annual interest payment
FOR JOURNAL ENTRY:
Record the bond issue on January 1, 2021.
Record the semi-annual interest payment on June 30, 2021.
Record the semi-annual interest payment on December 31, 2021.
On January 1, 2021, a company issues $770,000 of 8% bonds, due in twelve years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $714,192. Required: 1. Fill in the blanks in the amortization schedule below: (Round your answers to the nearest dollar amount. Enter all amounts as positive values.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021 2. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheetStep by Step Solution
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