Bonds

Question 3: (1.5 marks) On 1 January 2020, VNM issues 2-year bonds with a par value of $24,000. The bond have 10% of contractual rate and pay interest on 1 July and 1 Jan. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 95% or $22,800. Prepare journal entry on: (a) the issue date, 1 January 2020 (b) first interest payment, 1 July 2020 (c) the maturity date, 1 January 2022