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On January 1, 198A a corporation sold $2,000,000 of it's own 95 ten year bonds The bonds were dated January 1, 198A with interest payable

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On January 1, 198A a corporation sold $2,000,000 of it's own 95 ten year bonds The bonds were dated January 1, 198A with interest payable each June 30 and December 31 and were sold to yield the buyers an 8% annual return. (MARKET RSR Required: 1. Prepare a calculation to show the price at which the bonds were sold Use the present value tables 2. Prepare a form with the columnar headings of Illustration 17-3 and in the amounts for the first two interest periods of the bond Round amounts to the test full dollar 3. Prepare entries in general Journal form to record the sale of the bonds and the payment of interest at the ends of the first two interest periods Ending Period Contract Premium Umorized Caming Rate Discount amount Rate VA 6/30/8A 12345A

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