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On January 1, 2019, ABC Company issued $60,000,000 of 20-year, 10.5% bonds when the market rate...

On January 1, 2019, ABC Company issued $60,000,000 of 20-year, 10.5% bonds when the market rate of interest was 8.5%. Interest is paid semi-annually on June 30 and December 31.

Required:      

  1. Using Excel (NOT present value tables), compute the price at which the bond was issued.
  2. Using Excel and the effective interest method of bond amortization, prepare an amortization table for the entire life of the bond issue.
  3. Prepare ALL journal entries for the following dates:

January 1, 2019

June 30, 2019

December 31, 2038

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