On January 1, 2009, McKeown, Inc., issued ($ 250,000) of (8 %), 9 -year bonds for ($
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On January 1, 2009, McKeown, Inc., issued \(\$ 250,000\) of \(8 \%\), 9 -year bonds for \(\$ 220,776\), which implies a market (yield) rate of \(10 \%\). Semiannual interest is payable on June 30 and December 31 of each year.
(a) Show computations to confirm the bond issue price.
(b) Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and discount amortization on June 30, 2009, and (3) semiannual interest payment and discount amortization on December 31, 2009.
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Related Book For
Financial Accounting For MBAs
ISBN: 9781934319345
4th Edition
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
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