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The notes to the financial statements for Rollins Corporation reveal the following information related to long-term debt. The company uses the effective interest method of
The notes to the financial statements for Rollins Corporation reveal the following information related to long-term debt. The company uses the effective interest method of amortization and interest is compounded semiannually. Required: Prepare journal entries for the zero-coupon bonds during 2016. Determine the accounts and the amounts that should be included on the 2016 balance sheet, income statement, and the statement of cash flow, respectively, regarding the $1,000,000, 4.5% bonds. Assume the statement of cash flow is prepared using the direct method. The $1,000,000, 7.0% bonds were issued on degree October 1, 2015. Prepare the adjusting entry that should be recorded on 12/31/15
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