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full answer of part b 9-3B - Bond Issued at a...

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Accounting

full answer of part b
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9-3B - Bond Issued at a Discount On November 1, 2024, Terry Co. issues a $1,000,000 5-year 3% bond. The market rate of interest is 5%. Because the market rate is higher than the bond rate, the bonds issue at a discount. The bond quote is: 91.248. The bonds pay interest semi-annually on May 1 and November 1. The company's fiscal-year end is May 31. Required a.) Prepare a bond amortization schedule for the issuance and the first three interest periods. b.) Record the journal entry required on: i. The issuance of the bond. (November 1, 2024) ii. The first interest payment. (May 1, 2025) iii. The company's fiscal year-end. (May 31, 2025) iv. The second interest payment. (November 1, 2025)

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