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Please post step-by-step computations, thank you! On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon
Please post step-by-step computations, thank you!
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits. Date Debit Credit January 01 General Journal General Journal Cash Premium on bonds payable Bonds payable 1,580,000Step by Step Solution
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