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On January 1, 2010, Walt Disney Co. issued $100,000 face value 12% 5 year bonds at $103,766. This price resulted in an effective-interest rate of

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On January 1, 2010, Walt Disney Co. issued $100,000 face value 12% 5 year bonds at $103,766. This price resulted in an effective-interest rate of 11% on the bonds. Walt Disney uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on July 1 and January 1 Instructions a. b. c. Prepare the journal entry to record the issuance of the bonds on January 1, 2010 Prepare an amortization table to December 31, 2014 Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2010 d. Prepare the journal entry to record the payment of interest and the amortization of the premiurm on July 1, 2011, assuming no accrual of interest on June 30 Prepare the journal entry to record the redemption of the bonds at maturity e

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