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Levy Co. sold $800,000, 9%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and interest is paid on January 1.
Levy Co. sold $800,000, 9%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and interest is paid on January 1. The bonds were sold at 105. Levy Co. uses the straight-line method to amortize bond premium or discount. 1) Prepare the journal entry to record the issuance of the bonds. 2) Prepare the adjusting entry to record the accrual of interest on December 31, 2017. 3) Show the balance sheet presentation on December 31, 2017. 4) Prepare the journal entry to record payment of interest on January 1, 2018 5) On January 1, 2019, when the carrying value of the bonds was $832,000, the company redeemed the bonds at 106. Record the redemption of the bonds assuming that interest for the period has already been paid
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