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Prepare entries to record issuance of bonds, payment of interest, amortization of premium, and redemption...

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Question

Accounting

Prepare entries to record issuance
of bonds, payment of interest,
amortization of premium, and
redemption at maturity.
*E15.15(L05), AP Adcock Company issued $600,000,9%,20-year bonds on January 1,2022, at 103. Inter-
est is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount.
Instructions
Prepare the journal entries to record the following.
a. The issuance of the bonds.
b. The accrual of interest and the premium amortization on December 31,2022.
c. The payment of interest on January 1,2023.
d. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid
and recorded.
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