Really Amazing Vacations Ltd

question 6

Essay

Really Amazing Vacations Ltd. issues $1,000,000 of ten-year, 10% bonds dated January 1,2020. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $1,048,801 sales price less the $80,000 fee charged by Really Amazing's investment bank. Really Amazing's year-end is December 31.
Required:
Prepare journal entries:
a. The issuance of the bonds.
b. Payment of interest and related amortization on July 1, 2020.
c. Accrual of interest and related amortization on December 31, 2020.

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Definitions:

Cavalier

In drafting and design, it refers to a type of oblique drawing where the depth is represented at full scale.

Dimension Line

A graphical representation in technical drawing, showing the direction and extent of a dimension, typically marked with arrowheads.

Straight Line

The shortest distance between two points; in geometry, it is an infinite number of points along the same direction with no curvature.

Revision Block

A part of the drawing documentation where changes and revisions are recorded.