Question: Really Really Cheap Vacations Ltd. issues $2,000,000 of five-year, 5% bonds dated January 1, 2021. Interest is payable on January 1 and July 1 each

Really Really Cheap Vacations Ltd. issues $2,000,000 of five-year, 5% bonds dated January 1, 2021. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $1,900,000 sales price less the $10,000 fee charged by Really’s investment bank. Really’s year-end is December 31.

Required:

Prepare journal entries to record:
a. The issuance of the bonds.
b. Payment of interest and related amortization on July 1, 2021.
c. Accrual of interest and related amortization on December 31, 2021.

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a The issuance of the bonds journal entries record include i Journal Entry 1 Issued Bonds Record iss... View full answer

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