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On January 1, 2024, Rodriguez Window and Pane issued $19.2 million of 10-year, zero-coupon bonds for $6,761,942. Required: 2. Determine the effective rate of
On January 1, 2024, Rodriguez Window and Pane issued $19.2 million of 10-year, zero-coupon bonds for $6,761,942. Required: 2. Determine the effective rate of interest. 1. & 3. to 5. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Interest rate General Journal Determine the effective rate of interest. Interest rate % Interest rate General Journal > General Interest rate Journal Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to nearest whole dollar. View transaction list Journal entry worksheet < 1 2 3 4 Record the issuance of the bonds. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet 3 4 Record annual interest expense at December 31, 2024. Note: Enter debits before credits, Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 4 Record annual interest expense at December 31, 2025. Note: Enter debits before credits. Date December 31, 2025 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the payment at the bonds' maturity. Note: Enter debits before credits. Date December 31, 2030 General Journal Debit Credit Record entry Clear entry View general Journal
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