Prepare partial balance sheet showing presentation of bonds

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Reference no: EM131261534

Benson industries, inc. issued $2,000,000 of 8% debentures on may 1, 2001 and received cash totaling $1,774,526. The bonds pay interest semiannually on may 1 and nov. 1. The maturity date on these bonds is nov. 1, 2009. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 10%. Please show all calculations. 1) Prepare all journal entries for 2001 2) Prepare a partial balance sheet showing the presentation of the bonds and the interest payable at dec. 31, 2001

Reference no: EM131261534

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Prepare partial balance sheet showing presentation of bonds : Benson industries, inc. issued $2,000,000 of 8% debentures on may 1, 2001 and received cash totaling $1,774,526. The bonds pay interest semiannually on may 1 and nov. 1. The bonds were sold to yield an effective interest rate of 10%. Prepare all jour..

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