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Lemon Co. sells $1,000,000 of 10% bonds on August 1, 2017. The bonds pay interest on February 1 and August 1. The due date of

Lemon Co. sells $1,000,000 of 10% bonds on August 1, 2017. The bonds pay interest on February 1 and August 1. The due date of the bonds is August 1, 2020. The bonds yield 12%. On October 1, 2018, Lemon Co. buys back $200,000 worth of bonds for $218,000 (includes accrued interest). Give entries through October 1, 2018

What is the present value of the bond at the date of issuance?
What is the amount of interest expense as of 12/31/17?
What is the amount of interest expense as of 2/1/18?
What is the amount of interest expense as of 8/1/18?
What is the amount of interest expense as of 10/1/18 for
the bonds reacquired?
What is the loss on the bonds reacquired at 10/1/18?

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