Question
Company Berkshire Hathaway Inc. issued 2,000 bonds with a face value of $1,000 each and a coupon rate of 6%. The bonds pay interest semi-annually,
Company Berkshire Hathaway Inc. issued 2,000 bonds with a face value of $1,000 each and a coupon rate of 6%. The bonds pay interest semi-annually, and the market interest rate is 5%. 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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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
