Question 3 (10 points) Fatima Fatima Inc issued 5000,000 of 10%, 20-year bonds on February 1, 2022, at 102. Interest is

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Question 3 10 Points Fatima Fatima Inc Issued 5000 000 Of 10 20 Year Bonds On February 1 2022 At 102 Interest Is 1 (33.99 KiB) Viewed 4 times

Question 3 10 Points Fatima Fatima Inc Issued 5000 000 Of 10 20 Year Bonds On February 1 2022 At 102 Interest Is 2 (37.86 KiB) Viewed 4 times

Question 3 10 Points Fatima Fatima Inc Issued 5000 000 Of 10 20 Year Bonds On February 1 2022 At 102 Interest Is 3 (37.86 KiB) Viewed 4 times

Question 3 10 Points Fatima Fatima Inc Issued 5000 000 Of 10 20 Year Bonds On February 1 2022 At 102 Interest Is 4 (40.48 KiB) Viewed 4 times

Question 3 10 Points Fatima Fatima Inc Issued 5000 000 Of 10 20 Year Bonds On February 1 2022 At 102 Interest Is 5 (40.48 KiB) Viewed 4 times

Question 3 (10 points) Fatima Fatima Inc issued 5000,000 of 10%, 20-year bonds on February 1, 2022, at 102. Interest is payable semi-annually on August 1 and February 1. Fatima inc. foliows ASPE and uses a straight line method of amortization for any bond premium or discount. Assume an effective yield of 9.70%. (with a market rate of 9.75%, the e price would sightly higher. For simplicity ignore this) Instructione Prepare the joumal entries to record the following (round to the nearest dollar 1 The issuance of the bonds 2 The payment of interest and the related amortization on August 1, 2022 3 The accrual of interest and the related amortization on December 31, 2022 Briefly discuss how each amount related to the bonds would be classifed on Fatima's balance sheet. Show each account and amount and indicate whether it would be classified as current or non-aurent. Remember to show your work and name the something w Responses that do not show work and generic names will receive a score of se Activate Windows
estion 3 (10 points) Fati Fatime Indud 9900,000 of 10%, 20-year bonds on February 1, 2022, at 102. Interest is payable semi-ennually on August 1 and February 1. Fatima inclos sa straight Ane method of amortization for any bond premium or discount. Assume an effective yield of 9.79%, (with a marhat rate of 0.70%, the almplicity, ignore this) Prepare the joumat entries to recced the following (round to the nearest doler of the bonds The 2 The payment of interest and the related amortization on August 1, 2022 3 The accrual of interest and the related amortization on December 31, 2022 Briefly discuss how each amount related to the bonds would be classifed on Fatima's balance sheet. Show each account and e would be classified as current or non-current. Remember to show your work and nameur file something unique Responses that do not show work and generic file names will receive a score of zero and indicate whether it
E14.4 (LO 2) Excel (Entries for Bond Transactions-Effective Interest) Foreman Inc. issued $800,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semi-annually on July 1 and January 1. Foreman Inc. uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield of 9.75%. (With a market rate of 9.75%, the issue price would be slightly higher. For simplicity, ignore this.) Instructions Prepare the journal entries to record the following (round to the nearest dollar): a. The issuance of the bonds b. The payment of interest and the related amortization on July 1, 2020 c. The accrual of interest and the related amortization on December 31, 2020