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On January 1, 20X2, Spice Corp sold 12% bonds having a maturity value of $1,000,000 for $1,075,814.74, which provides the bondholders with a 10% yield.

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On January 1, 20X2, Spice Corp sold 12% bonds having a maturity value of $1,000,000 for $1,075,814.74, which provides the bondholders with a 10% yield. The bonds are dated January 1, 20X2 and mature January 1, 20X7, with interest payable December 31 of each year. Spice Corp allocates interest and unamortized discount or premium on the effective interest basis. Required: a) Prepare the journal entry at the date of the bond issuance. b) Prepare a schedule of interest expense and bond amortization for 20X2-20X4. c) Prepare the journal entry to record the interest payment and the amortization for 20X2 d) Prepare the journal entry to record the interest payment and the amortization for 20x4

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