For each of the following three examples, provide the journal entry that the company would make on the date the bonds are issued.Note that you will need to use Excel to do present value calculation to determine the cash proceeds from each bond issue. You can round your answer to the nearest dollar.

1. Handerson Inc. issues 8-year bonds with a face value of $50,000,000 and a stated annual interest rate of 6%. The bonds pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 8%.

2.)Torgren Corporation issues 10-year bonds with a face value of $20,000,000 and a stated annual interest rate of 6%. The bonds pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 6%.

3.)Walmart Company issues 30-year bonds with a face value of $20,000,000 and a stated annual interest rate of 5%. The bonds pay interest annually on December 31.The annual market rate of interest on the date of issue is 4%.

Answer rating: 100% (QA)

1 Handerson Inc issues 8year bonds with a face value of 50000000 and a stated annual interest rate o... View the full answer