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Daan Corporation wholesales repair products to equipment manufacturers. On April 1 , 2 0 1 6 , Daan Corporation issued $ 4 , 6 0
Daan Corporation wholesales repair products to equipment manufacturers. On April Daan Corporation issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest is payable semiannually on April and October Question Content Area a Journalize the entry to record the issuance of bonds on April For a compound transaction, if an amount box does not require an entry, leave it blank. blank Feedback Area Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straightline method of amortization provides equal amounts of amortization over the life of the bond. Question Content Area b Journalize the entry to record the first interest payment on October and amortization of bond premium for six months, using the straightline method. The bond premium amortization is combined with the semiannual interest payment. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. blank Feedback Area Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straightline method of amortization provides equal amounts of amortization over the life of the bond. Question Content Area c Why was the company able to issue the bonds for $ rather than for the face amount of $ The market rate of interest is the contract rate of interest. Feedback Area
Daan Corporation wholesales repair products to equipment manufacturers. On April Daan Corporation issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest is payable semiannually on April and October
Question Content Area
a Journalize the entry to record the issuance of bonds on April For a compound transaction, if an amount box does not require an entry, leave it blank.
blank
Feedback Area
Feedback
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
The straightline method of amortization provides equal amounts of amortization over the life of the bond.
Question Content Area
b Journalize the entry to record the first interest payment on October and amortization of bond premium for six months, using the straightline method. The bond premium amortization is combined with the semiannual interest payment. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.
blank
Feedback Area
Feedback
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
The straightline method of amortization provides equal amounts of amortization over the life of the bond.
Question Content Area
c Why was the company able to issue the bonds for $ rather than for the face amount of $
The market rate of interest is
the contract rate of interest.
Feedback Area
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