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PROBLEM 1 (15 %). Titania Co. sells $600,000 of 12% bonds on May 1, 2018. The bonds pay interest on November 1 and May 1.
PROBLEM 1 (15 %). Titania Co. sells $600,000 of 12% bonds on May 1, 2018. The bonds pay interest on November 1 and May 1. The due date of the bonds is May 1, 2023. The bonds yield 10%, selling for $638,780. On July 1, 2019, Titania buys back $400,000 worth of bonds for $415,000 . Prepare journal entries through July 1, 2019. Required: (Round to the nearest dollar.). 1. Prepare the journal entries on May 1, 2018. (3%)- 2. Prepare the Interest Expense and amortization entries on November 1, 2018. (2%) 3. Prepare the adjusting entries on December 31, 2018. (2%). 4. Prepare the Interest Expense and amortization entries on May 1, 2019. (2%)- 5. Prepare all the related journal entries on July 1, 2019 for the early - Extinguishment of the Bonds.(6%)- t PROBLEM 1 (15 %). Titania Co. sells $600,000 of 12% bonds on May 1, 2018. The bonds pay interest on November 1 and May 1. The due date of the bonds is May 1, 2023. The bonds yield 10%, selling for $638,780. On July 1, 2019, Titania buys back $400,000 worth of bonds for $415,000 . Prepare journal entries through July 1, 2019. Required: (Round to the nearest dollar.). 1. Prepare the journal entries on May 1, 2018. (3%)- 2. Prepare the Interest Expense and amortization entries on November 1, 2018. (2%) 3. Prepare the adjusting entries on December 31, 2018. (2%). 4. Prepare the Interest Expense and amortization entries on May 1, 2019. (2%)- 5. Prepare all the related journal entries on July 1, 2019 for the early - Extinguishment of the Bonds.(6%)- t
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