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Complete the requirements of CP10-6, assuming Southwest Corporation uses simplified effective-interest amortization shown in Chapter Supplement 10C.
Required:
1. Compute the cash received from the bond issuance in dollars (show computations).
2. Give the journal entry to record the issuance of the bonds.
3. Give the journal entries to record the payment of interest on December 31, 2015 and 2016.
4. How much interest expense would be reported on the income statements for 2015 and 2016? Show how the liability related to the bonds should be reported on the balance sheets at December 31, 2015 and 2016.
the following data apply to superior auto supply inc. for may 2012.1.balance per the bank on may 31 8000.2.deposits in
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