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Business, 07.10.2021 08:00 risolatziyovudd

On 1/1/2019, Illini issued four-year, 5%, $300,000 face value bonds when the effective market rate (yield) for bonds of similar risk and maturity was 8%. Interest is paid semiannually on June 30 and December 31. Illini chose the fair value method. Effective Interest Cash Change Balance 1/1/2019 269,703 6/30/2019 10,788 7,500 3,288 272,991 12/31/2019 10,920 7,500 3,420 276,410 6/30/2020 11,056 7,500 3,556 279,967 12/31/2020 11,199 7,500 3,699 283,665 6/30/2021 11,347 7,500 3,847 287,512 12/31/2021 11,500 7,500 4,000 291,513 6/30/2022 11,661 7,500 4,161 295,673 12/31/2022 11,827 7,500 4,327 300,00 Required: 1. Due to changes in credit risk, the effective rate was 6% on 6/30/2019. Provide journal entries for 6/30/2019. 2. Due to change in general market conditions, the effective rate was 7% on 12/31/2019. Provide journal entries for 12/31/2019. 3. What was the effect of the bonds on the 2019 income

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On 1/1/2019, Illini issued four-year, 5%, $300,000 face value bonds when the effective market rate (...
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