Refer to the information in RE14-5. Assume Corley, Inc., uses the effective interest method to amortize the
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Prepare the journal entry to record the first interest payment.
In RE14-5, On January 1, Corley, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%.
Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For 
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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