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What is the journal entry to record the bond issuance

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Reference no: EM132767961

Question - Goal sports ltd is authorised to issue $3,200,000 of 10% 10 year bonds payable. On Dec 31 20x0 when the market interest rate is 12% the company issues $2,500,000 of the bonds. Goal sports ltd amortizes bond discounts by the effective interest method. The semi-annual interest dates are June 30 and Dec 31.

Required -

1. Make a bond amortization table for the first four semi-annual interest periods.

2. What is the journal entry to record the bond issuance on Dec 31, 20X0? Use 3 decimal point time value of money factors in calculating your answers.

Reference no: EM132767961

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