Question
1. On January 1, a company issues bonds dated January 1 with a par value of $370,000. The bonds mature in 5 years. The contract
1. On January 1, a company issues bonds dated January 1 with a par value of $370,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $384,280. The journal entry to record the first interest payment using the effective interest method of amortization is:
2. On January 1, a company issues bonds dated January 1 with a par value of $240,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $249,262. The journal entry to record the issuance of the bond is:
3. On January 1, a company issues bonds dated January 1 with a par value of $480,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $461,461. The journal entry to record the first interest payment using straight-line amortization is:
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The Next Step Advanced Medical Coding And Auditing
Authors: Carol J. Buck
1st Edition
0323430775, 978-0323430777
