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question slink corporation issued 450 000 7 10 year bonds on january 1 2014 for 483 4290896

Question

Slink Corporation issued $450,000, 7%, 10-year bonds on January 1, 2014, for $483,120. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Slink uses the effective-interest method to amortize bond premiums and discounts.

Prepare journal entries to record the following events (round to nearest dollar):

a) The issuance of the bonds on January 1, 2014.

b) The accrual of interest and the discount or premium amortization on December 31, 2014.

c) The payment of interest on January 1, 2015.

d) The accrual of interest and the discount or premium amortization on December 31, 2015.

e) Determine carrying value of the bonds at January 1, 2016.

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