Question
Company Amazon.com, Inc. issued 2,500 bonds with a face value of $1,000 each and a coupon rate of 4%. The bonds pay interest semi-annually, and
Company Amazon.com, Inc. issued 2,500 bonds with a face value of $1,000 each and a coupon rate of 4%. The bonds pay interest semi-annually, and the market interest rate is 3%. Calculate the total proceeds from the issuance of bonds and prepare the journal entry to record the issuance. Discuss the characteristics of bonds and their significance in long-term financing.
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
