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Please show work on how the answers are produced Legacy issues $600,000 of 70%, four-year bonds dated January 1, 2017, that pay interest semiannually on
Please show work on how the answers are produced
Legacy issues $600,000 of 70%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31, They are issued at $541,807 and their market rate is 10% at the issue date. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' first two years Semiannual Interest Period-End Cash Interest Bond Interest Discount Unamortized Paid Carrying Value Amortization Discount Expense S 541,807 01/01/2017 06/30/2017 S 21,000 S22,050 21,000 12/31/2017 21,000 06/30/2018 21,000 2/31/2018Step by Step Solution
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