Io Corporation has an opportunity to acquire a factory in another part of the country.After careful analysis,Io has decided to raise the necessary capital for the acquisition by issuing $4,000,000 of 8%,10-year bonds dated March 1,2017,with interest payments on March 1 and September 1.Assume the bonds are issued on July 1,2017 at 108 plus accrued interest at a time when the market rate of interest was 6.9%.Io's year end is December 31 and the company uses the effective-interest method to amortize any bond discount or premium.
a_Prepare the entry to record the issuance of the bonds on July 1,2017.
b_Prepare the entry on September 1,2017,to record the interest payment.
c_Prepare the entry to record the accrued interest on December 31,2017.
d_Prepare necessary closing entry on December 31,2017.
e_Prepare the March 1,2018 entry to record the interest payment.

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The Answer of Io Corporation has an opportunity to acquire a factory in another part of the country.After careful analysis,Io has decided to raise the necessary capital for the acquisition by issuing $4,000,000 of 8%,10-year bonds dated March 1,2017,with interest payments on March 1 and September 1.Assume the bonds are issued on July 1,2017 at 108 plus accrued interest at a time when the market rate of interest was 6.9%.Io's year end is December 31 and the company uses the effective-interest method to amortize any bond discount or premium.
a_Prepare the entry to record the issuance of the bonds on July 1,2017.
b_Prepare the entry on September 1,2017,to record the interest payment.
c_Prepare the entry to record the accrued interest on December 31,2017.
d_Prepare necessary closing entry on December 31,2017.
e_Prepare the March 1,2018 entry to record the interest payment.

Io Corporation Has an Opportunity to Acquire a Factory in Another