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help please accounting Serotta Corporation is planning to issue bonds with a face value of $300,000 and a coupon rate of 12 percent. The bonds
help please accounting
Serotta Corporation is planning to issue bonds with a face value of $300,000 and a coupon rate of 12 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30 , September 30 , and December 31 . All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8 percent. Required: 1. Provide the journal entry to record the issuance of the bonds. 2. Provide the journal entry to record the interest payment on March 31, June 30, September 30 , and December 31 of this year. 3. What bonds payable amount will Serotta report on this year's December 31 balance sheetStep by Step Solution
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