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Suppose HSBC issued a four-year $12,000 bond with a stated interest rate of 5.25% when the market interest rate was 541%. Assume that the accounting
Suppose HSBC issued a four-year $12,000 bond with a stated interest rate of 5.25% when the market interest rate was 541%. Assume that the accounting year of HSBC ends on September 30 . Journalize the following transactions, including an explanation for each entry. a. Issuance of the bond payable on April 1, 2020 b. Accrual of interest expense on September 30,2020 (rounded to the nearest dollar) c. Payment of cash interest on October 1, 2020 d. Payment of the bonds at maturity (give the date) a. Journalize the issuance of the bond payable on April 1, 2020. (Record debits first, then credits. Enter explanations on the last line.) b. Journalize the accrual of interest expense on September 30, 2020 (rounded to the nearest dollar)
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