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I need help answering this question On April 30, 2017, Smokey Inc. issues a $100,000 10-year 7% bond. The market rate of interest is 6%.
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On April 30, 2017, Smokey Inc. issues a $100,000 10-year 7% bond. The market rate of interest is 6%. Because the market rate is lower than the bond rate, the bonds issue at a premium. The bond quote is: 107.439. The bonds pay interest semi-annually on October 31 and April 30. 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. (April 30, 2017) ii. The first interest payment. (October 31, 2017) iii. The company's fiscal year-end. (December 31, 2017) iv. The second interest payment. (April 30, 2018)Step by Step Solution
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