Xonic Corporation issued 8 million of 20 year, 8 percent bonds on April 1, 2018, at 102. Interest is due on March 30 of each year, and all of the bonds in the issue mature on March 31, 2038. Xonic's fiscal year ends on December 31. Prepare the following entries. a. April 1,2018, to record the issuance of the bonds b. September 30, 2018 to pay the interest and to amortize the bond premium. c. March 31, 2038, to pay the interest, amoritize the bond premium, retire the bonds at maturity (make two separate entries) d. Brifely explain the effect of amoritizing the bond premium on (1) the annual net income and (2) annual net cash flow from operating activites.
Xonic Corporation issued 8 million of 20 year, 8 percent bonds on April 1, 2018, at 102. Interest is due on March 30 of each year, and all of the bonds in the issue mature on March 31, 2038. Xonic's fiscal year ends on December 31. Prepare the following entries.
a. April 1,2018, to record the issuance of the bonds
b. September 30, 2018 to pay the interest and to amortize the bond premium.
c. March 31, 2038, to pay the interest, amoritize the bond premium, retire the bonds at maturity (make two separate entries)
d. Brifely explain the effect of amoritizing the bond premium on (1) the annual net income and (2) annual net
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