Ashanti Kingdom Inc. (AKI) issued a 10-year, 5% bond with a face value of $1,000,000...
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Ashanti Kingdom Inc. (AKI) issued a 10-year, 5% bond with a face value of $1,000,000 on January 1, 2020. Interest is paid annually on December 31. The market rate of interest on that date is 4%. Please respond to the following questions. Note: Use the present value tables on Couse Site (Days 21 and 22 folder) to perform calculations as needed. Round all present value interest factors to 4 decimal places. Round all $ numbers to the nearest whole number. Choose... Choose... Choose... Choose... How much is the carrying value of the bond at the end of year 2022? How much is the carrying value of the bond at the end of year 2026? Provide an appropriate journal entry to record the issuance of bonds on January 1, 2020 Provide an appropriate journal entry to record interest paid, interest expense, and discount or premium amortized for the year 2023. Assuming AKI recalls the bond at the end of 2024 (i.e. early retirement) at a basis of 104. How much is the cash paid to retire the bonds? Assuming AKI recalls the bond at the end of 2024 (i.e. early retirement) at a basis of 104. How much is the gain or loss on early retirement of the bonds? Choose... Choose
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