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Problem 10-8AB (Algo) Effective Interest: Amortization of bond discount LO P5 Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2020, that pay interest

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Problem 10-8AB (Algo) Effective Interest: Amortization of bond discount LO P5 Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31 They are issued at $507,301 when the market rate is 12% Required: 1. Prepare the January journal entry to record the bonds issuance 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years 4. Prepare the journal entries to record the first two interest payments Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the below table to calculate the total bond interest expense to be recognized over the bands' life. Total bond interest expense over life of bonds! Amount ropad 8 payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ 0 Problem 10-8AB (Algo) Effective Interest: Amortization of bond discount LO P5 Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31 They are issued at $507,301 when the market rate is 12%. Required: 1. Prepare the January 1journal entry to record the bonds issuance, 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds first two years, 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' first two years. (Round your intermediate and final answers to the nearest whole dollar) Semiannual interest Cash Interest Paid Bond Interest Discount Unamortized Period-End Expense Amortization Discount Carrying Value 01/01/2020 06/30/2020 12/31/2020 06/30/2021 12/31/2021

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