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On July 1 , 2 0 2 2 , Forest Corp. issued $ 1 , 0 0 0 , 0 0 0 of 6 %
On July Forest Corp. issued $ of payable each June and December year bonds payable. The bonds were issued to yield The company uses effective interest amortization for the discount. Due to changes in interest rates, these bonds were selling in the market at the end of December at an effective rate of Because the company had available cash, half of the bonds were purchased in the market and retired on January at Show your calculations calculator inputsRequired:a Calculate the issue price of the bonds by Forest Corp. on July b Calculate the book carrying value of the bonds on December PeriodInterestExpenseInterestPaidAmortizationEnding BalanceBesides having some available cash, explain one reason why Forest might want to retire their bonds.Give the entry by Forest Corp. to record the retirement of the bonds on January General JournalDateAccount Titles and ExplanationDebitCredit
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