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On January 1, 2020, Oxford Corp. issued five-year, 10% bonds with a face value of $550,000, with interest payable semi-annually on June 30 and December
On January 1, 2020, Oxford Corp. issued five-year, 10% bonds with a face value of $550,000, with interest payable semi-annually on June 30 and December 31. At the time, the market rate for similar bonds was 12%. Required: a) Calculate the issue price of the bonds. Round the answer to the nearest dollar b) Provide the complete bond amortization schedule using effective interest rate method. c) Provide the journal entry on Jun 30, 2021 d) On December 31, 2022, after payment of interest, Oxford Corp redeemed the bonds at 95. Prepare the journal entry for retirement of bonds. Assume the journal entry for interest payment for December 31, 2022 has been recorded. I incus
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