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Prepare the journal entries to record the interest payment

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Reference no: EM132832437

On January 1st, 2017, Fruit Chews Company sold 5%, 20-year bonds having a maturity value of $1,713,500 for $1,500,000 , which provides bondholders with a 6% yield to maturity. The bonds are dated Jan 1, 2017. Interest is payable every July 1 and January 1. Use the effective interest method.

Instructions:

Problem A) Prepare the journal entries for bond issuance

Problem B) Prepare the schedule for interest expense and bond amortization for the 20-year life of the bond

Problem C) Prepare the journal entries to record the interest payment and amortization got 2020, 2022, 2028, 2031, and 2033

Reference no: EM132832437

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