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Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of...

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of KC Champs Co.: (Show Calculations!)
January 1, 2020
Issued $4,000,000 face value, 8% bonds for $4,360,800. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102.
June 1, 2023
The bond has a carrying value of $4,234,520 (Bond Payable is $4,000,000 and Premium on Bond Payable is $234,520) when KC Champs Calls the bonds at a price of 102.

 

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Answer: Credit Date Jan 1, 2020 Debit 4,360,800 General Journal Cash Bonds Payable Premium on Bonds Payable (To record Issuan

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