Question
3. On January 1, 2019, Brennen Huff and Dale Doback Enterprises Inc. issued ten-year bonds with a face value of $4,000,000 and a stated interest
3. On January 1, 2019, Brennen Huff and Dale Doback Enterprises Inc. issued ten-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31 for the sole purpose of have the funds to buying the publication rights to Good Housekeeping Magazine. The bonds were sold to yield 12% (market rate). Instructions
(a) (5 points) Calculate the issue price of the bonds.
(b) (3 points) How much is and please label the premium (discount)?
(c) (2 points) How much will the check(s) be on June 30th, 2019?
(d) (5 points) Please prepare the required journal entry for June 30th, 2019.
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