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On June 1, 20x1, Jeff Co. issued $12,000,000 of 10% bonds to yield 12%. Interest is...

On June 1, 20x1, Jeff Co. issued $12,000,000 of 10% bonds to yield 12%. Interest is payable semiannually on May 31 and November 30. The bonds mature in 15 years. Jeff Co. is a calendar-year corporation.

       Required:

Determine the issue price of the bonds. Show computations.

Prepare an amortization table through the first two interest periods using the effective interest method.

Prepare the journal entries on

June 1, 20x1

November 30, 20x1

December 31, 20x1

May 31, 20x2

What would be the journal entry if all bonds are retired at 103 on May 1, 20x2 right after the second payment.

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