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NO EXPLANATION NEEDED, please, just solve everything, would be greatly appreciated (thumbs up)! :) Required information Problem 14-10AB Effective Interest: Amortization of bond LO P6
NO EXPLANATION NEEDED, please, just solve everything, would be greatly appreciated (thumbs up)! :)
Required information Problem 14-10AB Effective Interest: Amortization of bond LO P6 [The following information applies to the questions displayed below.] Ike issues $240,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $246,087. When the market rate is 10%. Problem 14.10AB Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. General Journal Debit Credit Date January 01 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 3. Prepare an effective interest amortization table for the bonds' first two years. Semiannual Interest Period-End Cash Interest Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 4. Prepare the journal entries to record the first two interest payments. Date General Journal Debit Credit June 30 Date General Journal Debit Credit December 31Step by Step Solution
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