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I NEED HELP WITH C Swifty Corporation issued $836,000, 15%, 10-year bonds on December 31, 2018, for $817,190. Interest is payable annually on December 31.

I NEED HELP WITH C

Swifty Corporation issued $836,000, 15%, 10-year bonds on December 31, 2018, for $817,190. Interest is payable annually on December 31. Swifty Corporation uses the straight-line method to amortize bond premium or discount.

A) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2018

Cash

817,190

Discount on Bonds Payable

18,810

Bonds Payable

836,000

B) Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2019

Interest Expense

127,281

Discount on Bonds Payable

1,881

Cash

125,400

C) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2028

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