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Franklin Company issued $90,000 of 10-year, 9% bonds payable on January 1, .Company pays interest each January 1 and July 1 and amortizes discount or
Franklin Company issued $90,000 of 10-year, 9% bonds payable on January 1, .Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions
Requirement 1. Journalize Clark Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize the issuance of the bond payable at face value. Journalize the payment of semiannual interest when the bonds are issued at face value. Requirement 2. Journalize Clark Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 90 Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize the issuance of the bond payable at Journalize the payment of semiannual interest when the bonds are issued at 90 . Requirement 3. Journalize Clark Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 103 Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize the issuance of the bond payable at 103 Journalize the payment of semiannual interest when the bonds are issued at 103 Requirement 4. Which bond price results in the most interest expense for Clark? Explain in detail. The resulting in interest expense results in the most interest expense. The the amount of interest actually paid. must be amortized over the life of the bond, must be amortized over the life of the bond, the amount of interest actually paid. Requirements 1. Journalize Franklin Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. 2. Journalize Franklin Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 90. Explanations are not required. 3. Journalize Franklin Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 103. Explanations are not required. 4. Which bond price results in the most interest expense for Franklin Company? Explain in detail
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