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On January 1, 2011, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518.
Required:
1. Prepare the journal entry to record the bond issue.
2. Determine the effective rate of interest.
3. Prepare the journal entry to record annual interest expense at December 31, 2011.
4. Prepare the journal entry to record annual interest expense at December 31, 2012.
5. Prepare the journal entry to record the extinguishment at maturity.
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International Financial Reporting Standards? Include any appropriate journal entries in your response.
you are the accountant for a division of a company that is constructing a building for its own use. it is january 2011
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