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Unformatted text preview: 2007 interest payment journal entry, if bonds are issued at: a. 0.75 b. 1.1? 7) On January 1, 2008 ABC issues bonds with face value of $1,000,000 and coupon rate of 10%, paid semiannually. The bonds mature in 30 years. At the time of Mikhail Pevzner and George Mason University issuance, the annual market yield was 12%. On January 1, 2020, ABC buys bonds back on the open market for $700,000. Determine: a. Whether the bond is issued at discount, par, or premium; b. Original issue price on January 1, 2008 c. The value of bond liability on ABCs books on January 1, 2020 d. The journal entry ABC books on January 1, 2020 e. The total amount of interest expense over the bonds maturity period ABC would have paid, had it not retired the bonds...
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