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Assume the following: Romeo Ltd. needed to raise additional capital to finance its expansion. The company decided to issue bonds. The bonds had a face
Assume the following: Romeo Ltd. needed to raise additional capital to finance its expansion. The company decided to issue bonds. The bonds had a face value of $500 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, 202, which represented a yield of 5%. Use this given information to answer Questions 33 and 34. Determine the bonds discount O a None O b. The bonds premium equals 19,500,000 Oc. The bonds are issued at par Od. The bonds discount equals 19,500,000 on 4 The journal entry to record the issuance of the bonds bt of O a. Dr. Bonds payable 480,500; Cash 480,500,000 b. Dr. Cash 500,000,000: Common shares 500,000,000 c. Dr. Cash 480,500,000; Bonds payable 480,500,000. O d. Dr. Cash 500,000,000, Bonds payable 500,000,000. uestion
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