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Given Information Face Value: $290,000 Maturity Date: 12/31/2019 Stated Rate: 7% Interest Payment Dates: 6/30; 12/31 Issuance Date: 1/1/2010 Issuance...

Given Information
Face Value: $290,000
Maturity Date: 12/31/2019
Stated Rate: 7%
Interest Payment Dates: 6/30; 12/31
Issuance Date: 1/1/2010
Issuance Price: 94


Requirements

Journal Entries (see next page):
1. Show the journal entry required upon issuance (include the date)
2. Show the journal entry required for first interest payment.
3. Show the journal entry required upon maturity (include the final interest payment).
Additional Questions (see next page):
4. What happens to the discount/premium over the life of the bond?
5. What happens to the carrying value?

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