Make the journal entries to record the interest payment

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On January 1, 2020, Windsor Inc. sold 12% bonds having a maturity value of $770,000 for $859,850, which provides the bondholders with a 9% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method.

Problem 1: Prepare the journal entry at the date of issue.

Problem 2: prepare a schedule of interest expense and bond amortization for 2020 through 2023.

Problem 3: Prepare the journal entries to record the interest payment and the amortization for 2020.

Problem 4: Prepare the journal entries to record the interest payment and the amortization for 2022.

Reference no: EM132666193

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