District Water Company issued 10-year bonds with a face value of $100,000 and a stated interest rate of 8.0%. The bonds are dated April 1, 2016, and call for semiannual interest payments on each April 1 and October 1. � Due to market fluctuations, the bonds actually sold to yield 10.0% per year. � � � � 1. Compute the amount received for the bonds. � � � � � � � � 2. Compute the first interest and amortization amounts for the October 1, 2016, payment. � 3. Prepare journal entries for the issuance of the bonds and for the first interest payment. � 4. Compute the second interest and amortization amounts for the April 1, 2017, payment.
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