Question
January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors
January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond.
March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity.
April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full years depreciation for the first year.
June 30: Book the depreciation for the first half of the year on the printer equipment purchased April 22.
June 30: Book the interest for the first half of the year on the loan you took out on March 6.
June 30: Book the interest payment and amortization on discount for bond.
***Please show work
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