Question
1/1/18 Company Z issues bonds with a par value of $1,000,000, they mature in 10 years, and pay 5% interest semiannually on 6/30 and 12/31.
1/1/18 Company Z issues bonds with a par value of $1,000,000, they mature in 10 years, and pay 5% interest semiannually on 6/30 and 12/31. The bonds are sold at a discount of 95% due to a contract rate that is less than the market rate. Amortization is straight line. The journal entry for the issuance of the bonds on 1/1/18 would have a :
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
