You skipped this question in the previous attempt Problem 14-9 Zero-coupon bonds

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You skipped this question in the previous attempt Problem 14-9 Zero-coupon bonds [LO14-2] On January 1, 2018, Darnell Window and Pane issued $19.2 million of 10-year, zero-coupon bonds for $6,761,942. (FV of $1, PV of $1 FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 2. Determine the effective rate of interest 1. & 3. to 5. Prepare the necessary journal entries. ts Complete this question by entering your answers in the tabs below eBook Interest ra General ournal References Prepare the necessary journal entries. (If no expry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermedaite calulation and final answers to nearest whole dollar.) View transaction list Journal entry worksheet 2 Record the issuance of the bonds. Note: Enter debits before credits January 01, 2018 O Type here to search

Explanation / Answer

Operating activities: Net income 70 Adjustments to convert net income to cash basis: Depreciation 24 Loss on sale of equipment 2 Gain on sale of investments -6 Increase in accounts receivable -79 Decrease in inventory 37 Increase in prepaid expenses -2 Increase in accounts payable 78 Decrease in accrued liabilities -5 Increase in income taxes payable 9 58 Net cash provided by operating activities 128

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