Question
A $4,000,000 bond with a 10% interest rate was issued for $4,540,000 with an effective interest rate of 8%. Interest is paid on December 31.
A $4,000,000 bond with a 10% interest rate was issued for $4,540,000 with an effective interest rate of 8%. Interest is paid on December 31. Prepare the journal entries for the initial entry for issuing the bond on Jan 1, 2016, the first interest payment on December 31, 2016 and the second interest payment on December 31, 2017.
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Yearly Interest 400000010 400000 Date Account Head Debit Cre...
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
