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Please prepare journal entries for all 3 parts of question A company issues 896, two-year bonds on December 31, 20X1, with a par value of
Please prepare journal entries for all 3 parts of question
A company issues 896, two-year bonds on December 31, 20X1, with a par value of $7,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of $7,000. Prepare journal entries to record (a) the issuance of bonds on December 31, 20X1; (b) the first through fourth interest payments on each June 30 and December 31; and (c) the maturity of the bond on December 31, 20X3 A company issues 896, two-year bonds on December 31, 20X1, with a par value of $7,000 and semiannual interest payments on the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 96.46 or $6,752 (a) Prepare an amortization table for these bonds; use the straight-line method to amortize the discount. Then, prepare journal entries to record (b) the issuance of bonds on December 31, 20X1 (c)the first through fourth interest payments on each June 30 and December 31; and (d) the maturity of the bond on December 31, 20X3. A company issues 806, two-year bonds on December 31, 20X1, with a par value of $7,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%, which implies a selling price of 103.71 or $7,260. (a) Prepare an amortization table for these bonds; use the straight-line method to amortize the premium Then, prepare journal entries to record (b) the issuance of bonds on December 31, 20X1; (c) the first through fourth interest payments on each June 30 and December 31; and (d) the maturity of the bond on December 31, 20X3Step by Step Solution
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