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Problem 4 On December 31, 20x0, an entity issues bonds with the following characteristics: Face Value Coupon rate Yield to maturity Maturity Coupon payment dates
Problem 4 On December 31, 20x0, an entity issues bonds with the following characteristics: Face Value Coupon rate Yield to maturity Maturity Coupon payment dates Bond issue costs $20,000,000 3% 3.2% December 31, 20x15 Jun 30, Dec 31 $360,000 Required - a) b) Write the journal entries for this bond for the years 20x0 and 20x1. Assume that on January 1, 20x9, 10% of the bond issue is retired at 98. Write the journal entry to show the bond retirement and write the journal entry to record the interest payment at June 30, 20x9. On July 1, 20x11, the remaining bonds are repurchased at 101. Write the journal entry to show the bond retirement c)
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