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On January 1, 2020, Cactus Corp. issued ten-year, 10% bonds with a face value of $500,000, with interest payable semi-annually on June 30 and December

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On January 1, 2020, Cactus Corp. issued ten-year, 10% bonds with a face value of $500,000, with interest payable semi-annually on June 30 and December 31. At the time, the market rate was 12%. Required a. Use your calculator to calculate the issue price of the bonds. Round the answer to the nearest dollar. b. Independent of your solution to part a), assume that the issue price was $442,000. Prepare the amortization table for 2020. Round values to the nearest dollar. Fun Land Corp. issued a 5-year, o interest bearing note with a $1,000,000 face value to Lightning Inc. for $1,000,000 cash. Fun Land also gave Lightning the right to use a parcel of land for equipment storage for 5 years. Interest rates for notes of this type were 8% at issue. Required a. Prepare the journal entries to record the issuance of the note by (1) Fun Land and (2) Lightning

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