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On January 1,2024, Rahman Co. issued five-year bonds with a face value of $100,000 and...

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Question

Accounting

On January 1,2024, Rahman Co. issued five-year bonds with a face value of $100,000 and a stated
interest rate of 8%, payable semiannually on June 30 and December 31. Assume that the bonds were sold
to yield 6%.
Instructions:
Compute the amount of cash Rahman Co. received on 11?2024(6 points).
PV=100,000(1+0.03)10
PV=$74,286
Prepare an amortization table for 2024 through 2028 for the bonds. Assume amortization is
recorded on interest payment dates (16 points).
Give all journal entries Rahman Co. entered for the year 2024(4 points).
Show how the bonds were shown on the Balance Sheet of Rahman Co. on 12/31/2024.(4
points).
What will be the maturity value of the bonds on 11?2029(2 points)?
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