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Tristate Recreation Park (TRP) finances operations with both bonds and stock. Suppose TRP issued $200,000 of 10-year, 6% bonds payable under various market conditions. Match
Tristate Recreation Park (TRP) finances operations with both bonds and stock. Suppose TRP issued $200,000 of 10-year, 6% bonds payable under various market conditions. Match each market interest rate with the appropriate bond price, as follows. The three possible bond prices are $216,000; $200,000; and $186,000. TRP pays annual interest each December 31. After determining the respective bond prices, make the following journal entries for the bond premium situation (explanations are not required): Dec. 31, 2008 Issuance of the bonds at a premium. Dec. 31, 2009 Payment of interest and amortization of bond premium by the straight-line method. Dec. 31, 2018 Payment of interest and amortization of bond premium by the straight-line method. Dec. 31, 2018 Final payment of the bonds payable. How much total interest expense will TRP have during the 10-year life of these bonds
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