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Presented below are selected transactions on the book of Simonson Foundry. July 1, 2022 Bonds payable with a par value of $900,000, which is are
Presented below are selected transactions on the book of Simonson Foundry. July 1, 2022 Bonds payable with a par value of $900,000, which is are dated January 1, 2022, are sold at $1,010,610, coupon rate 12 percent, and mature January 1, 2032. The market interest rate was 10 percent. December 31 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. January 1, 2023 Interest on bonds is paid. January 2 Bonds of par value of $360,000 are called at 102 and extinguished. December 31 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Instructions Prepare journal entries for the transaction above
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