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Please help with this question Kawa Inc. issued $6,000,000 face value of 3.5% bonds on July 1st, 2020. Additional information on the bond issue is
Please help with this question
Kawa Inc. issued $6,000,000 face value of 3.5% bonds on July 1st, 2020. Additional information on the bond issue is as follows: Bond Date Maturity Date Yield rate Interest payment dates Bond discount/premium amortization Year end July 1st, 2020 July 1st, 2030 4% June 30th and December 31st Effective Interest Rate Method December 31st Please round all calculations to the nearest dollar. 1. Determine the bond cash proceeds? Calculate the amount of premium/discount, if any. 2. Please record journal entries for the bond issuance on July 1st and interest payment on December 31st 3. On July 1st, 2026, Kawa redeemed 45% of the bonds outstanding at 98%4. a. Calculate the carrying value of the bond on July 1st, 2026. b. Calculate the amount of cash paid.( c. Calculate the gain or loss on redemption. 4. Please record the journal entries for the bond redemption on July 1st and the interest payment on December 31st, 2026Step by Step Solution
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