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On August 3 1 , Year 7 , DEF Company issues a $ 1 , 0 0 0 , 0 0 0 1 0 -
On August Year DEF Company issues a $year bond. The market rate of interest is The bond quote is The companys fiscal year end is July The bond pays interest semiannually on February and August each year.
Required:
a Prepare a bond amortization table as outlined below for the first years of the bond.
b Record the journal entry for the issuance of the bond August Year
c Record the journal entry for the first semiannual payment. February Year
d Record the journal entry for the year end adjustment. July Year
e Record the journal entry for the second semiannual payment. August Year
Bond amortization table
Date Payment Interest expense Discount amortized Carrying value
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