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Problem 4 On February 15, 20x1, the Claudio Corporation issues $10,000,000 of 4.3% bonds. The bonds were dated December 31, 20x0, and are due on December 31, 20x15. The bonds were issued to yield 4.6% and pay interest semi-annually on June 30 and December 31, Required - Prepare all journal entries relative to this bond issue for the year ended December 31, 20x1.
Problem 3 On December 31, 20x0, the Einaudi Corporation issues $4,000,000 of 5% bonds. The bonds are due on Decennber 31, 20x12 and were issued to yield 4.8%. The bonds pay interest semi-annually on June 30 and December 31. Bond issue costs of $46,500 were incurred. Required a) Prepare all journal entries relative to this bond issue for the years ended December 31, 20x0 and December 31, 20x1. Assume that on July 2, 20x8, Einaudi repurchases 40% of the bond issue at 105 Prepare the journal entry on July 2, 20x8. Also prepare the journal entry on December 31, 20x8.
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