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please show the working Harie Company has the following transactions related to non-current liabilities. On January 1, 2019, Harie Company issued 10% bonds with a
please show the working
Harie Company has the following transactions related to non-current liabilities. On January 1, 2019, Harie Company issued 10% bonds with a par value of $1,000,000 due in 10 years. They were issued to yield 8% (i.e. the effective interest rate is 8%) and were callable at 102 at any date after January 1, 2020. Interest are payable semiannually on July 1 and January 1, starting from July 1, 2019. Required: (a) Compute the selling price of the bonds on January 1, 2019. (2 marks) (b) Prepare a bond amortization schedule up to and including January 1, 2020. (3 marks) (c) Prepare the journal entries to record the issuance of the bonds on January 1, 2019 and interest payment on July 1, 2019. (5 marks) (Ignore any potential impact of the bonds' callable nature on the selling price. Refer to the Appendices for Present Value tables and round your answer to the nearest dollar.)Step by Step Solution
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