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help QUESTION 2 On January 1, 2020, Blessing Company issued Rp 1.800.000.000 face value, 5%, 10-year bonds at Rp1.667.518.000. This price resulted in an effective
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QUESTION 2 On January 1, 2020, Blessing Company issued Rp 1.800.000.000 face value, 5%, 10-year bonds at Rp1.667.518.000. This price resulted in an effective interest rate of 6% on the bonds. Blessing Company uses the effective interest method to amortise bond premium or discount. The bonds pay annual interest January 1. Required: a. Prepare the journal entries to record the issuance of the bonds on January 1, 2020. b. Prepare an amortisation table through December 31, 2023 (4 interest periods) for this bond issue. c. Prepare the journal entry to record the accrual of interest and the amortisation of the discount on December 31, 2020. d. Prepare the journal entry to record the payment of interest on January 1, 2021. e. Prepare the journal entry to record the accrual of interest and the amortisation of the discount on December 31, 2021 Step by Step Solution
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