Question: Question 5 Bond Payable Really Amazing Vacations Ltd. issues $1,000,000 of ten-year, 10% bonds dated January 1,2020. Interest is payable on January 1 and July

Question 5 Bond Payable

Really Amazing Vacations Ltd. issues $1,000,000 of ten-year, 10% bonds dated January 1,2020. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $1,048,801 sales price less the $80,000 fee charged by Really Amazing's investment bank. Really Amazing's year-end is December 31. (Hint you will need to find your market interest rate (I/Y)

Prepare journal entries:

a. The issuance of the bonds.

b. Payment of interest and related amortization on July 1, 2020.

c. Accrual of interest and related amortization on December 31, 2020.

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