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Styles Intermediate Accounting II Assignment 1 LO2 Guaido Co. is building a new project at a cost of $2,500,000. It received a downpayment of $500,000
Styles Intermediate Accounting II Assignment 1 LO2 Guaido Co. is building a new project at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2013, and pay interest annually on each January 1. The bonds yield 10 %. Assume the premium on bonds is the approximately the last 5 digits of your ID Instructions Prepare the journal entry to record the issuance of the bonds on January 1, 2013. Prepare a bond amortization schedule up to and including January 1, 2019, using the effective- interest method. Assume that on July 1, 2019, Guaido Co. redeems half of the bonds at a cost of $1,065,000. (c) Prepare the journal entry to record this redemption
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