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The Alfredsson Corporation decided to raise much needed capital by completing a 10 year, $10 million bond offering on March 1st 2022. The bond offering
The Alfredsson Corporation decided to raise much needed capital by completing a 10 year, $10 million bond offering on March 1st 2022. The bond offering carried a Face (Coupon) Rate of 5% with Interest payable every six months. On the date that the bonds were issued, the Market Rate was 6%. Round all answers to the nearest dollar amount. Required: 1) Prepare the Journal Entries, on the books of Alfredsson, to record the issuance of the bonds on March 1st 2022; 2) Prepare the Journal Entries, on the books of Alfredsson, to record the payment of interest on September 1st 2022; 3) Prepare the Journal Entries, on the books of Alfredsson, required at December 31st 2022, Alfredsson's year-end; 4) Prepare the Journal Entries, on the books of Alfredsson, to record the payment of interest on March 1st 2023; 5) On March 1st 2030, the company decided to repurchase the bonds for $9,750,000. Prepare the Journal Entry, on the books of Alfredsson, to record this repurchase transaction, assuming the interest had already been paid on March 1, 2030
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