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Tarawa Limited issued $1,270,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,175,534 when the bonds

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Tarawa Limited issued $1,270,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,175,534 when the bonds were issued. Interest is payable semi-annually on July 1 and January 1. Tarawa has a December 31 year end. Part 1 Your answer is partially correct. Record the accrual of interest on December 31. (Round answers to decimal places, s. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense Interest Payable 31.750 Bonds Payable Prove the amount of cash received when the bonds were sold by determining the bonds' present value (issue price) on January 1, 2018. Prove the carrying amount of the bonds, one year later, by determining the present value of the bonds at that time. (Round answers to decimal places. e.g. 5,275.) Bonds' present value (issue price) on January 1, 2018 $ Present value of the bonds From the following list indicate all of the liabilities that would be classified as current. a. Unearned revenue on a project that will be completed in 6 months. b. Bank loan payable in 2 years. c. Deferred income taxes. d. Pension liability. e. The portion of a 10-year bank loan that is due this year. f. Payroll deductions owing to the government. g. A provision for warranty repairs related to a product with a 1-year warranty

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