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Record the issuance of the bonds and bond interest

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Reference no: EM132541057

Question - It Corporation sold $15,000,000, 8%, 10-year bonds on January 1, 2020. The bonds apply interest on July 1 and January 1. Mr. A uses the straight-line method to amortize bond premium or discount. Assume no interest accrued on June 30.

Instruction -

1. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest happens for 2020, assuming that the bonds sold at 102.

2. Prepare journal entries as in part (1) assuming that the bond sold at 95.

3. Show statement of financial position presentation for each bond issued at December 31, 2020.

Reference no: EM132541057

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