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Trevor Company borrowed money by issuing $6,000,000 of 8% bonds payable at 101.1 on July 1, 2018. The bonds are five-year bonds and pay interest
Trevor Company borrowed money by issuing $6,000,000 of 8% bonds payable at 101.1 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Trevor receive when it issued the bonds payable? Journalize this transaction. Trevor received $ when the bonds payable were issued. Requirements 1. How much cash did Trevor receive when it issued the bonds payable? Journalize this transaction. 2. How much must Trevor pay back at maturity? When is the maturity date? 3. How much cash interest will Trevor pay each six months? 4. How much interest expense will Trevor report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2018, and payment of interest on January 1, 2019. Print Done
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