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SlamDunk, Inc. sells $300,000 of 10% bonds on February 1, 2003. The bonds pay interest on August 1and February 1. The due date of the bonds is August 1, 2006. The bonds yield 12%. The company hasa yea
SlamDunk, Inc. sells $300,000 of 10% bonds on February 1, 2003. The bonds pay interest on August 1and February 1. The due date of the bonds is August 1, 2006. The bonds yield 12%. The company hasa year end of December 31. Show the journal entries required on the following dates:a.February 1, 2003b.August 1, 2003c.December 31, 2003d.February 1, 2004e.Now, assume that on May 1, 2004, the company reacquires half the bonds ($150,000 face)for $154,000 including accrued interest. Assume that after the February 1 entry there is aremaining discount of $12,636. Prepare the journal entries required upon reacquisition.
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