Question
On April 1, Amalfia Co. issued 5-year, 10% bonds with a maturity value of $40,000 Iterest is paid on September 30 and March 31. The
On April 1, Amalfia Co. issued 5-year, 10% bonds with a maturity value of $40,000 Iterest is paid on September 30 and March 31. The yield at the time of bond issuance was 14%. Amalfia Co. amortizes bond discounts/premiums by the effective interest method.(Round your calculations to the closest integer; no decimals)
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Part 1
Record the required journal entries:
(a) At the issuance of the bonds on April 1
(b) At the semi-annual interest payment date on September 30
(c) the interest accrual on December 31, the fiscal year-end for Amalfia Co.
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