Io Corporation Has an Opportunity to Acquire a Factory in Another

question 90

Essay

Io Corporation has an opportunity to acquire a factory in another part of the country.After careful analysis,Io has decided to raise the necessary capital for the acquisition by issuing $4,000,000 of 8%,10-year bonds dated March 1,2017,with interest payments on March 1 and September 1.Assume the bonds are issued on July 1,2017 at 108 plus accrued interest at a time when the market rate of interest was 6.9%.Io's year end is December 31 and the company uses the effective-interest method to amortize any bond discount or premium.
a_Prepare the entry to record the issuance of the bonds on July 1,2017.
b_Prepare the entry on September 1,2017,to record the interest payment.
c_Prepare the entry to record the accrued interest on December 31,2017.
d_Prepare necessary closing entry on December 31,2017.
e_Prepare the March 1,2018 entry to record the interest payment.

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Definitions:

Young Adulthood

a life stage occurring from approximately the late teens to the early thirties, focusing on personal and professional development.

Postconventional

A stage in Kohlberg's theory of moral development where moral reasoning is based on universal ethical principles and abstract reasoning.

Moral Development

The process by which individuals learn to distinguish right from wrong, developing beliefs, values, and behaviors that guide responsible decision-making.

Cognitive Awareness

The recognition and understanding of one's own mental processes, including thoughts, feelings, and perceptions.