Determine the selling price of the bonds for mitchell inc

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Reference no: EM132804694

Mitchell Inc. issued 60, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each June 31, and December 31, and were issued to yield 7%. The bonds mature December 31, 2022, and the company uses the effective interest method to amortize bond discounts or premiums.

Problem a. Determine the selling price of the bonds. Round amount to the nearest dollar.

Problem B. An amortization schedule for the full bond term.

Problem C. Journal entries on the following dates.

1. January 1, 2020, bond issuance.
2. June 31, 2020, interest payment.
3. December 31, 2020, interest payment.

Reference no: EM132804694

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