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Prepare the Journal entries in CFO Company's books on January 2, 2019 ii. Using the Effective Interest method of Amortization, prepare the journal entries CFO
Prepare the Journal entries in CFO Company's books on January 2, 2019 ii. Using the Effective Interest method of Amortization, prepare the journal entries CFO Company would make on December 2020. Remember that CFO Company is the Debtor or Borrower. iv. Using the Straight-line method of Amortization, prepare the journal entries CFO Company would make on December 31, 2020. Prepare the Journal entries ABC Company would make on January 2, 2024 when the Bonds are paid off by the Debtor. JI: SHORT PROBLEMS (50 POINTS) ABC Company sold on January 2, 2019, $2,000,000 bonds with a coupon interest rate of 5% and market rate of 4% to CFO Company. The bonds mature in 5 years (January 2, 2024) and interest is payable -annually. Required. Prepare journal entries to record the transaction in ABC Company's Books on January 2, 2019. = 2,000,000 X 500 X 6112 x 8.9896+2,000,000x0.820 $2,089,730 Date Jan 2, 2019 Cash $2,089, 730 Bonds payable 8.2,000,000 Premium on bonds payable 889,730
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