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Ticket Inc Issued 10% bonds with a face amount of 240 million on January 1st...

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Accounting

Ticket Inc Issued 10% bonds with a face amount of 240 million on January 1st 2016. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity the market yield rate is 12%. Interest is paid semiannually on June 30 and December 31. Required 1. Determine the price of the bonds at January 1st 2016. 2. Prepare the journal entry to record their issuance by Ticket on January 1, 2016. 3. Prepare the journal entry to record interest on June 30, 2016 (at the effective rate). 4. Prepare the journal entry to record interest on December 31, 2016 (at the effective rate).

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