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Southwest Corporation issued bonds with the following details: Southwest Corporation Issued...

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Accounting

Southwest Corporation issued bonds with the following details: image
Southwest Corporation Issued bonds with the following detalls: Face value: $510,000 Interest: 10 percent per year payable each December 31 Terms: Bonds dated January 1, 2018, due five years from that date The annual accounting perlod ends December 31. The bonds were Issued at 103 on January 1, 2018, when the market interest rate was In the final year Required: sume the company uses straight-line amortization and adjusts for any rounding errors when recording Interest expense 1. Compute the cash received from the bond Issuance in dollars. TIP: The Issue price typically ls quoted at a percentage of foce value 2. & 3. Prepare the Journal entry to record the Issuance of the bonds and the payment of Interest on December 31, 2018 and 2019. 4-a. How much Interest expense would be reported on the Income statements for 2018 and 20197 4-b. Compute the bond value which should be reported on the balance sheets at December 31, 2018 and 2019 Complete this question by entering your answers in the tabs below Req 1 Req 2 and 3 Req 4A Req 48 Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is quoted at a percentage of face value. Req 2 and 3 >

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