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On January 1, 2021, Sunland Ltd. issued bonds with a maturity value of $ 7,200,000 when the market rate of interest was 4 %. The

On January 1, 2021, Sunland Ltd. issued bonds with a maturity value of $7,200,000 when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The companys year end is December 31.
The bonds were redeemed on January 1, 2023 (after the interest had been paid and recorded) at
102. Prepare the journal entry for the redemption of the bonds.
Assume instead that the bonds were not redeemed on January 1, 2023. Record the entry for the repayment of the bonds on January 1, 2031.
What will be the total interest payment over the 10-year life of the bonds? What will be the total interest expense over the 10-year life of the bonds?
interest payment $______
interest expense $_______

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