Question
A company issues 7%, 10-year bonds with a face amount of $80,000 for $85,951 on January 1, 2021. The market interest rate for bonds of
A company issues 7%, 10-year bonds with a face amount of $80,000 for $85,951 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021.
- Record the bond issue.
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- Record the first interest payment on June 30, 2021.
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Financial Accounting Self Study Problems/Solutions Book
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
4th Edition
0471205133, 978-0471205135
