E9-23 (Static) Computing the Issue Price of a Bond with Analysis of Net Earnings and Cash Flow Effects

L09-3, 9-8

E9-23 (Static) Computing the Issue Price of a Bond with Analysis of Net Earnings and Cash Flow Effects LO9-3, 9-8 Imal Company issued a $1 million bond that matures in five years. The bond has a 9 percent coupon rate. When the bond was issued. the market interest rate was 8 percent. The bond pays interest twice per year, on June 30 and December 31. Use Table 8C.1, Table 8C2. Required: 1. Record the issuance of the bond on June 30. (Round time value factor to 4 decimal places. Enter your answer in dollars not in millions. Round intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Date 1 Jun 30 Cash Bonds payable Bonds payable General Journal Debit Credit 1,040,554 1,000,000 40,554