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Suppose HomeBound Airlines issued $100,000 of 6%, five-year bonds when the market interest rate is 10%. The market price of the bonds drops, and Southwest

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Suppose HomeBound Airlines issued $100,000 of 6%, five-year bonds when the market interest rate is 10%. The market price of the bonds drops, and Southwest receives $84,566 when the bonds are issued. The transaction was recorded as follows: (Click the icon to view the transaction.) HomeBound's joumal entries to record interest expense and amortize the bond discount in the first year follows: (Click the icon to view the journal entries.) At December 31, 2021, HomeBound's bond accounts appear as follows: (Click the icon to view the accounts.) What would HomeBound Airlines' 2021 income statement and year-end balance sheet report for these bonds? Begin by completing the income statement for 2021. Accounts Journal entries Transaction

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