Question: Fitzgerald Corporation issues a $3,000,000 in serial bonds on August 1, 20X2. The terms are as follow: o Time to maturity: three years o Stated

Fitzgerald Corporation issues a $3,000,000 in serial bonds on August 1, 20X2. The terms are as follow:

o Time to maturity: three years o Stated and effective interest rate: 7 percent, paid annually on August 1 o Principal to be repaid at the end of each year: $1,000,000 o Determine the journal entries for each of the following dates:

a. The issuance of the bonds on August 1, 20X2

b. Accrual of interest expense on December 31, 20X2

c. Payment of principal and interest on August 1, 20X3

d. Accrual of interest expense on December 31, 20X3

e. Payment of principal and interest on August 1, 20X4

f. Accrual of interest expense on December 31, 20X4 g. Payment of principal and interest on August 1, 20X5

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