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Problema 1 (10 Points) Celine Dion Company issued $600,000 of 10% 20-year bonds on January 1, 2002, at 102 Interest is payable semiannually on July

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Problema 1 (10 Points) Celine Dion Company issued $600,000 of 10% 20-year bonds on January 1, 2002, at 102 Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount Instructions Prepare the journal entries to record a. The issuance of bonds b. The payment of interest and the related amortization on July 1, 2002 c. The accrual of interest and the related amortization on December 31, 2002 Problem 2 (10 Puntos Assume the same information as in Problem 1, except that Celine Dion Company uses the effective-interest method of amortization for bond premium o discount. Assume an effective- interest of 9.75% Instructions Prepare the journal entries to record a. The issuance of bonds b. The payment of interest and the related amortization on July 1, 2002 c. The accrual of interest and the related amortization on December 31, 2002

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