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Provide the appropriate journal entry on September

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Question - On September 1, 2021, Imperial Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022.

Required -

a) Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds if the market rate of interest is 5%.

b) Assuming Imperial has a December 31 year end, prepare the 2021 year-end adjusting entry to account for accrued interest on the bonds.

c) Prepare a partial balance sheet at December 31, 2021 for Imperial Corporation displaying all amounts related to the bonds.

d) Prepare the journal entry on September 1, 2022 to record the first interest payment.

e) Assume the bonds were redeemed for $ 1,050,000 at September 30, 2024 when the amortized cost was $ 1,035,000. Record the redemption of the bonds.

Reference no: EM133066241

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