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iI need help with number 4 please. I would like to to see it step by step Rickey Company borrowed money by issuing $6,000,000 of
iI need help with number 4 please. I would like to to see it step by step
Rickey Company borrowed money by issuing $6,000,000 of 7% bonds payable at 102.4 on July 1, 2021. The bor are five-year bonds and pay interest each January 1 and July 1. Read the requirements. nuUvURILO VONI VIVIE Jul 1 Cash 6,144,000 Premium on Bonds Payable 144,000 Bonds Payable 6,000,000 2. How much must Rickey pay back at maturity? When is the maturity date? At maturity, Rickey must pay back $6,000,000 The maturity date is July 1, 2026 3. How much cash interest will Rickey pay each six months? Every six months, Rickey will pay interest of $ 210,000 4. How much interest expense will Rickey report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2021, and payment of interest on January 1, 2022. Every six months, Rickey will report interest expense of $ 195,600 Journalize the entry for accrual of interest and amortization of discount on December 31, 2021. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Credit Debit 14,400 Dec Interest Expense Premium on Bonds Payable 195,600 Interest Payable 210,000Step by Step Solution
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