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Lok issued 8 % , 8 0 , 0 0 0 bonds on February 1 , 2 0 2 4 . The bonds pay interest
Lok issued bonds on February The bonds pay interest each July and January and were issued to yield to investors. The bonds mature on January
Compute the amount of cash Lok will receive when it issues these bonds.
Prepare an amortization schedule that shows how the discount or premium on the bonds will be amortized over their term.
Prepare journal entries required on the following dates:
February issuance of the bonds.
July date of the first interest payment.
December accrual of interest through the end of the fiscal year.
January date of the second interest payment.
January the date the principal is repaid.
What would be the entry to record the issuance of the bonds if they are not issued until March that is between interest dates
Under the original assumption that the bonds are issued February How much would it cost Lok to pay off the bonds early by repurchasing them from the open market on August if the market interest rate on that date is
Give the journal entry that would be required to account for the early repayment, and comment on the interpretation of any gain or loss that would be recorded.
If Lok had to pay $ in legal, accounting, and registration fees in connection with the issuance of the bonds, explain how Lok would account for those costs on the date of issue
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