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Starlight Industries Ltd borrowed money by issuing a $30.0007.5%,10 year bond. Assume that Starlight Industries issued the bond on April 1, 2020, at a price
Starlight Industries Ltd borrowed money by issuing a $30.0007.5%,10 year bond. Assume that Starlight Industries issued the bond on April 1, 2020, at a price of 92 . Also assume that Starlight Industries's accounting year ends on September 30 . Journalize the following transactions for Starlight Industries; including an explanation for each entry: a. Issuance of the bonds on April 1, 2020 b. Accrual of interest expense and amortization of bonds on September 30,2020. (Use the straight-line amortization method and round amounts to the nearest dollar.) c. Payment of the first semi-annual interest amount on October 1, 2020 . a. Joumalize the issuance of the bonds on April 1,2020. (Record debits first, then credits, Enter explanations on the last line.) b. Joumalize the accrual of interest expense and amortization of bonds on September 30, 2020. (Use the straight-line. amortization method, and round amounts to the nearest dollar.) c. Journalize the payment of the first semi-annual interest amount on October 1, 2020
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