On May 1, 2010 RM Wino Inc. issued 6,200, 10-year, 4.2% bonds with a face value...

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On May 1, 2010 RM Wino Inc. issued 6,200, 10-year, 4.2% bonds with a face value of $1,000 while incurring issue costs of $72,000 The bond pay interest semi-annually and were sold for $6,301,379 providing investors with an annualized yield (market rate) of 4% Record the following transactions a 1-May-10 the issuance of the bonds b 1-Nov-10 and simultaneous payment of issue costs the first semi-annual interest payment and amortization of discount or premium as appropriate using the "effective interest method" C 31-Dec-10 year-end interest accrual using the "effective interest method" d e 31-Dec-10 amortization of bond issue cost for the period of May 1, 2010 through Dec. 31, 2010 1-May-11 the second semi-annual interest payment and amortization of discount or premium as appropriate using the "effective interest method" On May 1, 2010 RM Wino Inc. issued 6,200, 10-year, 4.2% bonds with a face value of $1,000 while incurring issue costs of $72,000 The bond pay interest semi-annually and were sold for $6,301,379 providing investors with an annualized yield (market rate) of 4% Record the following transactions a 1-May-10 the issuance of the bonds b 1-Nov-10 and simultaneous payment of issue costs the first semi-annual interest payment and amortization of discount or premium as appropriate using the "effective interest method" C 31-Dec-10 year-end interest accrual using the "effective interest method" d e 31-Dec-10 amortization of bond issue cost for the period of May 1, 2010 through Dec. 31, 2010 1-May-11 the second semi-annual interest payment and amortization of discount or premium as appropriate using the "effective interest method"

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Here are the journal entries for the transactions a May 1 2010 Issuance of Bonds Dr Cash 6301379 Cr ... View the full answer