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Problem 1: Accounting II Homework Chapter 15: Investments 1) On Jan 2, 2022; Home Depot issued a $40,000,000, 12%, 10-year bonds that pay semiannual
Problem 1: Accounting II Homework Chapter 15: Investments 1) On Jan 2, 2022; Home Depot issued a $40,000,000, 12%, 10-year bonds that pay semiannual interest on June 30 and December 31, receiving $38,000,000 from Facebook who purchased the entire issue. 2) On June 30, 2022, Home Depot made the first interest payment of the bonds using the SLM for the discount amortization. Required: The Journal entries for both, the Issuer and the Buyer. 1) Problem 2: On Jan. 2, 2022, Best Buy issued a $60,000,000, 8%, 5-year bonds that pay semiannual interest on June 30 and December 31, receiving cash of $62,000,000 from the Instagram Company who purchased the entire issue. 2) On June 30, 2022, Best Buy made the first interest payment of the bonds using the SLM for the premium amortization. Required: The Journal entries for both, the Issuer and the Buyer.
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