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E10-14(Static)(Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (without Premium...

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Accounting

E10-14(Static)(Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (without
Premium Account) L010-5
Park Corporation is planning to issue bonds with a face value of $2,000,000 and a coupon rate of 10 percent. The bonds mature in 10
years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses
the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5
percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)(Use the appropriate factor(s) from the tables provided.)
Required:
1.&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year.
What bonds payable amount will Park report on its June 30 balance sheet?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
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