Question: BONDS ISSUED AT FACE VALUE Ito Co. issued the following bonds: Date of issue and sale: ........April 1, 20-1 Principal amount: ..........$300,000 Sale price of

BONDS ISSUED AT FACE VALUE Ito Co. issued the following bonds:

Date of issue and sale: ........April 1, 20-1

Principal amount: ..........$300,000

Sale price of bonds: .........100

Denomination of bonds: ......$5,000

Life of bonds: ..........5 years

Stated rate: ...........10%, payable semiannually on

................September 30 and March 31

REQUIRED

Prepare journal entries for:

(a) Issuance of the bonds.

(b) Interest payment on the bonds on September 30, 20-1.

(c) Year-end adjustment on the bonds for 20-1.

(d) Reversing entry for the beginning of 20-2.

(e) Interest payments on the bonds for 20-2 (March 31 and September 30).

(f) Redemption at maturity.

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