Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually. Instructions Calculate
Question:
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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Step by Step Answer:
a Market interest rate 4 400000 082035 400000 25 898259 417966 Using a financ...View the full answer
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Related Book For 
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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