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When a company issued 6 % bonds on January 1 , Year 1 , with a face amount of $ 8 4 0 , 0
When a company issued bonds on January Year with a face amount of $ the market yield for bonds of similar risk and maturity was The bonds mature December Year years Interest is paid semiannually on June and December Required:
Determine the price of the bonds at January Year
Prepare the journal entry to record their issuance by the company on January Year
Prepare an amortization schedule that determines interest at the effective rate each period.
Prepare the journal entry to record interest on June Year
What is the amount related to the bonds that the company will report in its balance sheet at December Year
What is the amount related to the bonds that the company will report in its income statement for the year ended December Year Ignore income taxes.
Prepare the appropriate journal entries at maturity on December Year
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
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What is the amounts related to the bonds that the company will report in its balance sheet at December Year and income statement for the year ended December Year Ignore income taxes.
Note: Round intermediate calculations and final answers to the nearest whole dollar.
table December Year book value,$ Interest expense for Year $
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