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full answer of part b 9-4B - Bond Issued at a Premium On January 31, 2024, Bandit Inc. issues a $100,000 10-year 5% bond. The
full answer of part b
9-4B - Bond Issued at a Premium On January 31, 2024, Bandit Inc. issues a $100,000 10-year 5% bond. The market rate of interest is 4.5%. Because the market rate is lower than the bond rate, the bonds issue at a premium. The bond quote is: 103.991. The bonds pay interest semi-annually on January 31 and July 31. The company's fiscal-year end is December 31. Required a.) Prepare a bond amortization schedule for the issuance and the first three interest periods. b.) Record the journal entry required on: i. The issuance of the bond. (January 31, 2024) ii. The first interest payment. (July 31, 2024) iii. The company's fiscal year-end. (December 31, 2024) iv. The second interest payment. (July 31, 2025) Step by Step Solution
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