Question
Edna Company issues a 5 year, 5% face rate $100,000 bond on January 1, 2016, with interest payable each December 31. The bond is sold
Edna Company issues a 5 year, 5% face rate $100,000 bond on January 1, 2016, with interest payable each December 31. The bond is sold to yield 5.2% annual and the issue costs are $200.
- Calculate the price at which the bond sold on the market.
- Calculate the bonds effective interest rate (including issue costs.
- Prepare an amortization table covering 2016 and 2017
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- All of the bonds are retired on July 1, 2017. The price paid reflects a market interest rate of 5.4%
Calculate the price paid for the bond
Calculate the gain of loss on retirement
Record the entry to retire the bonds
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Information System Audit How To Control The Digital Disruption
Authors: Philippe Peret
1st Edition
1032136162, 978-1032136165
