Spearhead Specialties issued a 2-year, $150,000, 14% debenture on January 1, 20X3 dated as of that date.
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Question:
Spearhead Specialties issued a 2-year, $150,000, 14% debenture on January 1, 20X3 dated as of that date. The bond will pay interest every June 30 and December 31, with the principal to be paid on December 31, 20X4.
The effective interest rate on the bond is 10%, and the company uses effective-interest amortization.
a. determine the selling price for the bond.
b. provide the journal entry on January 1, 20X3.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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