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Please answer all four requirements in details. Thank you! Cupola Fan Corporation issued 8%, $440,000, 10-year bonds for $421,000 on June 30, 2018, Debt issue
Please answer all four requirements in details. Thank you!
Cupola Fan Corporation issued 8%, $440,000, 10-year bonds for $421,000 on June 30, 2018, Debt issue costs were $1,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $425,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2018 & 2019, and the call of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Step by Step Solution
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