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Question 3 (10 points) Fatima Fatima Inc. issued $000,000 of 10%, 20-year bonds on February 1, 2022, at 102. Interest is payable semi-annually on
Question 3 (10 points) Fatima Fatima Inc. issued $000,000 of 10%, 20-year bonds on February 1, 2022, at 102. Interest is payable semi-annually on August 1 and February 1. Fatima Inc. foliows ASPE and uses a straight line method of amortization for any bond premium or discount. Assume an effective yield of 9.75%. (with a market rate of 9.75%, t price would be slightly higher. For simplicity, ignore this) Instructions Prepare the joumal entries to record the following round to the nearest dollar 1. The issuance of the bonds 2 The payment of interest and the related amortization on August 1, 2022 3 The accrual of interest and the related amortization on December 31, 2022 Briefly discuss how each amount related to the bonds would be classifed on Fatima's balance sheet. Show each account and amount and indicate whether it would be classified as current or non-aument Remember to show your work and namene something unique Responses that do not show work and generic file names will receive a score o Activate Windows
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