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Enviro Company issues 11.00%, 10-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the annual market rate for
Enviro Company issues 11.00%, 10-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 128.125. The straight-line method is used to allocate Interest expense. 1. Using the implied selling price of 128.125. what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the implied selling price of 128.125. what are the issuer's cash proceeds from issuance of these bonds? Cash proceeds $ 56,375,000 Required 2 > CHE On January 1, MM Co. borrows $430,000 cash from a bank and in return signs an 4% Installment note for five annual payments of $96,590 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $96,590 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet Record the issuance of the
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