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Vindaloo Corp

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Vindaloo Corp. issues a new set of 8 percent, 20-year bonds in the amount of $1,500,000 on February 1, 2020. The bonds sell at 102.00 and pay interest on January 31 and July 31.

Required

Record (a) the issuance of the bonds on February 1, (b) the payment of interest on July 31, (c) the accrual of interest on December 31, and (d) the payment of interest on January 31, 2021. Assume Vindaloo Corp. amortizes the premium by the straight-line method.

hint-

Issuing bonds, paying and earning interest, and amortizing a premium by the straight-line method

c. Interest expense, $49,375