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Ricci Assembly, Inc., issued $800,000 of 8%, 6-year bonds at 97 on January 1, Year 1. Interest was payable semiannually. Through December 31, Year 4,
Ricci Assembly, Inc., issued $800,000 of 8%, 6-year bonds at 97 on January 1, Year 1. Interest was payable semiannually. Through December 31, Year 4, Huang had amortized $14,560 of the bond discount. On January 1, Year 5, Ricci retires the bonds at 102. a. Prepare journal entries to record the issuance of the bonds on January 1, Year 1, and the retirement of the bonds on January 1, Year 5. Account Debit Credit 0 0 Answer 0 0 Answer 0 0 Answer To record bond issuance. 0 0 Answer 0 0 Answer 0 0 Answer 0 0 Answer To record retirement of bonds. b. Post the journal entries from a. to the T-accounts below. Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash Answer 0 Answer 0 Bonds payable Answer 0 Answer 0 Bond discount Answer 0 Answer 0 Bond premium Answer 0 Answer 0 Interest expense Answer 0 Answer 0
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