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Please help me this question On June 1, 2022, Bunked Corporation sold $4,000,000 in long-term bonds. The bonds will mature in 20 years and have
Please help me this question
On June 1, 2022, Bunked Corporation sold $4,000,000 in long-term bonds. The bonds will mature in 20 years and have a coupon rate of 10% and a yield rate of 12%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective- interest method. Bunked Corporation has a December 31st fiscal year end. Required 1. Using the present value tables in Chapter 6, prepare a detailed calculation of the present value of the bond. 2. Prepare the journal entry to record the bond issuance on June 1, 2022. 3. Construct a bond amortization table for the first four years (through May 31st 2026). Round figures to the nearest dollar. 4. Assuming that interest and discount/premium amortization is recorded each May 31st, prepare the adjusting journal entry to be made on December 31, 2024. Round figures to the nearest dollarStep by Step Solution
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