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  3. a. $600,000 10 year, 6% bonds were issued at a tim

a. $600,000 10 year, 6% Bonds were issued at a time when the market rate...

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Accounting

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a. $600,000 10 year, 6% Bonds were issued at a time when the market rate of interest is 8%, and are later retired after 6 years at 98. i) Determine issue price of the Bonds. ii) Prepare Journal Entry for issue. ii) Determine Bond interest expense for each semiannual period and prepare the journal entry for interest payment. iv) Determine the total Bond interest expense over life of Bond. v) Prepare journal entry for the redemption. b, $600,000 10 year, 6% Bonds were issued at a time when the market rate of interest is 4% and later retired after 7 years at 101. Repeat (i) to (v) above

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