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Prepare the journal entry for second semi-annual interest

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Question - On July 1, 2021, John Smith Company issued $550,00, 13-year, 12% semi-annual bonds. On the issue date, the market is 14%.

Required -

1. Determine the amount of cash received from the insurance bond (all 4 steps).

2. Prepare the Journal Entry to record the issuance of the bond.

3. Prepare the Journal Entry for the first semiannual interest payment and amortization of the bond discount or premium using the Straight-line method or Amortization.

4. Prepare the Journal Entry for the second semi-annual interest payment and amortization of the bond discount or premium using the straight-line method or amortization.

5. Prepare the Journal Entry for the first journal entry semi-annual interest payment and amortization of the bond premium or discount using the effective interest method of amortization.

6. Prepare the Journal Entry for the second journal entry semi-annual interest payment and amortization of the bond premium or discount using the effective interest method of amortization.

Reference no: EM132863237

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