Question
a) Pharoah issued $420,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually. Calculate the price of the bond: (a) 4%, (b)
a) Pharoah issued $420,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually. Calculate the price of the bond: (a) 4%, (b) 5%, and (c) 6%.
b) Prepare the journal entry to record the issuance of the bond assuming the market rate of interest is: (a)4%, (b)5%, and (c)6%.(
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Financial Accounting An Introduction
Authors: Pauline Weetman
4th Edition
0273703404, 978-0273703402
