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i need answer to part C in which journal entries and adjusting entries related to bond are required On January 1,2024 , Wildhorse Ltd. issued
i need answer to part C in which journal entries and adjusting entries related to bond are required
On January 1,2024 , Wildhorse Ltd. issued bonds with a maturity value of $7.50 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2034, Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275.) Issue price $ Prepare a bond amortization schedule from the date of issue up to and including January 1, 2027. (Round answers to 0 decimal places, e. 8.5,275. Prepare all of the required journal entries related to the bonds that Wildhorse Ltd, will record up to 2026 , including any adjusting journal entries at December 31, 2026. (List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Step by Step Solution
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