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Calculate in the first blank spaces and journalize the values of F,G,H,I,J Q2) (2 MARKS EACH) A COMPANY ISSUE A BOND WITH THE FOLLOWING DETAILS
Calculate in the first blank spaces and journalize the values of F,G,H,I,J
Q2) (2 MARKS EACH) A COMPANY ISSUE A BOND WITH THE FOLLOWING DETAILS FACE A BOND WITH FACE AMOUNT CONTRACT RATE 120,000 6% 5 YEAR BOND SEMI ANNUAL PMTS TERMS OF BONDS MARKET RATE 11% INDEX NO. (PV OF FACE AMOUNT OF BOND) INDEX NO.(PV OF ANNUITY) 0.58543 7.53763 CACULATE: TOTAL NUMBER OF INTEREST PMTS ? B INTEREST PMT/YEAR SEMI ANNUAL PMT ? D SELLING PRICE OF BOND ? E IS THE ISSUENCE AT DISCOUT OR PREMIUM? ? JOURNALIZE THE FOLLOWING ENTERIES F ISSUENCE OF THE BOND G PAYMENT OF FIRST INTEREST EXPENSE (WITHOUT AMORTIZATION) H AMORTIZATION OF DISCOUNT/PREMIUM 1 RETIREMENT OF BOND AT THE TIME OF MATURITY J SUPPOSE THE COMPANY DOES NOT RETIRE THE BOND AT MATURITY AND INSTEAD IT REDEEMS THE BOND WITH THE FOLLWING DETAILS UMAMORTIZED PREMIUM/DISCOUNT 6000 5 99 (A 599 JUN .. 9Step by Step Solution
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