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Please solve the following: Question 4: (19 marks) On May 1, 2020, the Benson Company issued bonds dated January 1, 2020 with the following characteristics:
Please solve the following:
Question 4: (19 marks) On May 1, 2020, the Benson Company issued bonds dated January 1, 2020 with the following characteristics: Face value $10,000,000 Coupon rate 7% Yield to maturity 6% Coupon payment dates June 30, Dec. 31 Maturity 10 years The Benson Company's year-end is December 31. Required (parts a & b): a. Assuming the Benson Company uses the effective interest method, prepare all journal entries relating to this bond issue for the year 2020. b. Assume that on July 1, 2021 (right after the interest was paid); the company redeems one quarter of the bond issue on the open market at 103. Prepare the journal entry on July 1, 2021. Ignore any interest from June 30hStep by Step Solution
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