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On January 1 of this year, Bocchini Corporation sold a $ 1 0 million, 8 . 2 5 percent bond issue. The bonds were also

On January 1 of this year, Bocchini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had
a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 8C.1, Table 8C.2.
Required:
Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions
rounded to the nearest whole dollar.)
Answer is complete but not entirely correct.
Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method of
amortization. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time
value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.)
Answer is complete but not entirely correct.
Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter your
answers in dollars not in millions rounded to the nearest whole dollar.)
Answer is complete but not entirely correct.
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