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Please show your calculations thank you Part A: Three independent scenarios are presented below: 1. On July1, 2008, Better Debtors issued $100,000 worth of bonds
Please show your calculations thank you
Part A: Three independent scenarios are presented below: 1. On July1, 2008, Better Debtors issued $100,000 worth of bonds at face value. The Bonds carry 12% interest due each July 1 and mature on July 1, 2018. 2. On July 1, 2008, Big Discount issued $100,000 worth of bonds at a discount. The Bonds carry 12% interest due each July 1, and mature on July, 2018. The 13% market rate of interest resulted in an issuance price at a discount. 3. On July 1, 2008. Big Premium issued $100,000 worth of bonds at a premium. The Bonds carry 12% interest due each July 1, and mature on July 1, 2018. The 10% market rate of interest resulted in an issuance price at a premium. For each example listed above, provide the following: a) Calculate the proceeds on bond issuance and prepare the related journal entry. b) Complete a bond amortization schedule with the format and headings as provided below. c) Provide the journal entry for the accrued interest owed on December 31, 2008 and the interest payment on July 1, 2009. d) What is the journal entry for the retirement of the bond on July 1, 2018? Bond Amortization Schedule Interest Period CV-beg Expense Interest Disc./Prem. Unamortized Payment Amortization Disc./Prem. CV-endStep by Step Solution
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