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Accounting: Spring Water Company Ltd. needed to raise $60 million of additional capital to finance the expansion of its bottled water facility. After consulting an
Accounting:
Spring Water Company Ltd. needed to raise $60 million of additional capital to finance the expansion of its bottled water facility. After consulting an investment banker, it decided to issue bonds. The bonds had a face value of $60 million and an annual interest rate of 4.5%, paid semi-annually on June 30 and December 31, and will reach maturity on December 31, 2030. The bonds were issued at 96.1 on January 1, 2021, for $57,660,000, which represented a yield of 5%.
LIST OF ACCOUNTS THAT CAN BE USED IN THE EMPTY BOXES:
- Cash
- Income Tax Expense
- Income Tax Payable
- Interest Expense
- Interest Payable
- Lease Liability
- Mortgage Payable
- No Entry
- Notes Payable
- Right-of-use Asset
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