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29 Sep 2019
E12-18 (Entries for Bond Transactions -- Effective Interest)Celine Dion Company issued $600,000 of 10%, 20-year bonds onJanuary 1, 2009, at 102. Interest is payable semianually on July 1and January 1. Dion Company uses the effective interest method ofamortization for bond premium or discount. Assume an efective yieldof 9.75%.
INSTRUCTIONS
Prepare the journal entries to record the following. (Round tothe nearest dollar)
a) the issuance of the bonds
b) the paymen of interest and related amorization on July 1,2009
c) The accrual of interest and the relted ammoritzation onDecember 31, 2009.
E12-18 (Entries for Bond Transactions -- Effective Interest)Celine Dion Company issued $600,000 of 10%, 20-year bonds onJanuary 1, 2009, at 102. Interest is payable semianually on July 1and January 1. Dion Company uses the effective interest method ofamortization for bond premium or discount. Assume an efective yieldof 9.75%.
INSTRUCTIONS
Prepare the journal entries to record the following. (Round tothe nearest dollar)
a) the issuance of the bonds
b) the paymen of interest and related amorization on July 1,2009
c) The accrual of interest and the relted ammoritzation onDecember 31, 2009.
Keith LeannonLv2
29 Sep 2019
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| Assume an effective yield of | 9.7705% | (market interest rate at issurance). | ||||
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| Instructions: make journal entrys and showformulas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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