Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually. Instructions Calculate

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Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually.


Instructions

Calculate the price of the bond and prepare the journal entry to record the issuance of the bond assuming the market rate of interest is:

a. 4%.

b. 5%.

c. 6%.

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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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