Number of bonds issued 500 Par value per bond $1,800 Stated interest rate 4% Market/Effective interest rate
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Number of bonds issued | 500 |
Par value per bond | $1,800 |
Stated interest rate | 4% |
Market/Effective interest rate | 6% |
Issue date | 1/1/X2 |
Due date (five year bonds) | 12/31/X6 |
Interest is paid semi annually on: | January 1st |
AND on | July 1st |
Bonds are called on | 1/1/X6 |
Bonds are called at | 102% |
a. At the date of call the journal entry required to extinguish the debt early has what impact on net income? Input the numeric amount. If it increase net income just input the amount. If it decreases net income use a minus sign such as -100.
b. At the date of call the unamortized bond discount or premium is what?
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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