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Problem #4 (15 points) McDonald Company issued bonds with a face amount of $1,600,000 in 2012. As of January 1, 2017, the balance in Discount
Problem #4 (15 points) McDonald Company issued bonds with a face amount of $1,600,000 in 2012. As of January 1, 2017, the balance in Discount on Bonds Payable is $4,800. At that time, McDonald redeemed the bonds at 97 Instructions Assuming that no interest is payable, make the entry to record the redemption. Problem #5 (15 points) On January 1, 2017, McDonald Company issued 5-year bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Instructions a. Prepare the journal entry for the issuance assuming the bonds are issued at 95. b. Prepare the journal entry for the issuance assuming the bonds are issued at 105 c. Record all necessary entries on December 31, 2017
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