Question: WILL RATE FAST: E14.9B (LO 1) (Entries and Questions for Bond Transactions) On July 1, 2020, Sugarland Company issued $2,000,000 face value of 10%, 10-year

WILL RATE FAST: WILL RATE FAST: E14.9B (LO 1) (Entries and Questions for Bond Transactions)

E14.9B (LO 1) (Entries and Questions for Bond Transactions) On July 1, 2020, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602, a yield of 12%. Sugarland uses the effective-interest method to amortize bond pre- mium or discount. The bonds pay semiannual interest on June 30 and December 31. Instructions (a) Prepare the journal entries to record the following transactions: (1) The issuance of the bonds on July 1, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021

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