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Provide the entries to update the bond accounts

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Reference no: EM132823596

On August 1 20X6, SimcoCorp. issued bonds with the following characteristics.

a. 60,000 face value

b. 10% nominal rate

c. 14% yield rate

d. Interest dates are 1 February, 1 May, 1 August, 1 November.

e. Bond date is 31 October 20X5

f. Maturity date is 1 November 20X10

Problem 1: Provide all entries required for the bond issue through 1 February 20X7 using the effective interest method. The company has a December 31 Year End

Problem 2: On June 1 20X8, Simco retired $30,000 of bonds at 98 through an open market purchase. Provide the entries to update the bond accounts in 20X8 (entries have been completed through 1 May 20X8) for this portion of the bond and to retire the bonds.

Problem 3: Provide the entries required on 1 August 20X8.

Reference no: EM132823596

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