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On May 1, 2021, Luna Co. issued a $342,000, 10%, two-year bond. Interest is to be paid semiannually. The market interest rate was 6%. Below
On May 1, 2021, Luna Co. issued a $342,000, 10%, two-year bond. Interest is to be paid semiannually. The market interest rate was 6%. Below is a completed bond amortization schedule: Date May 1/21 Cash Interest Paid Period Interest Expense Premium Unamortized Carrying Amort. Premium Value 25,425 367,425 zen. Stop sharing Hide 17,100 11,023 6,077 19,348 361,348 May 1/22 17,100 10,840 6,260 13,088 355,088 Nov 1/22 17,100 10,653 6,447 6,641 348,641 May 1/23 17,100 10,459 6,641 0 342,000 Totals 68,400 42,975 25,425 Required: Record the following journal entries for Luna Co. (round any calculations to the nearest dollar). a) Issuance of the bond on May 1, 2021. b) Payment of interest on November 1, 2021. c) Year-end accruals on December 31, 2021. d) Payment of interest on May 1, 2022
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