On May 1, 2020, Al Majed Enterprises Group issued $600,000, 9%, 5year bonds at face...
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Accounting
On May 1, 2020, Al Majed Enterprises Group issued $600,000, 9%, 5year bonds at face value. The bonds were dated May 15, 2020, and pay interest annually on May 15 Financial statements are prepared annually on Dec, 31st REQUIRED: (a) Prepare the journal entry to record the issuance of bonds. (b) Record the actual interest on 31/12/20. (c) Journalize the payment of interest on 1/5/21. (d) Assume Al Majed Enterprise will issue bond at a premium of 20%; show journal entry (e) Assume Al Majed Enterprise will issue the bond at discount of 7%; show journal entry
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