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Lisa Olsen Architects LLC sells a $500,000, 5 year, 10% Bond at 101% of Face Value....

Lisa Olsen Architects LLC sells a $500,000, 5 year, 10% Bond at 101% of Face Value. Prepare the journal entry to record the sale; then calculate the total cost of borrowing.

At the end of the fourth year Lisa decides to redeem her company’s outstanding bond. Olsen redeems the $500,000 face value bond at 103. Provide the journal entry for this bond redemption transaction.

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