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Exam 3 Problem 7 On December 31. 2020, Paulson company issues a 4-year bond with a par value of $100,000, a contract rate of 8%
Exam 3 Problem 7 On December 31. 2020, Paulson company issues a 4-year bond with a par value of $100,000, a contract rate of 8% annually and semiannual interest payments. At time of issues, prevailing interest rates for bonds of similar credit quality and maturity are 10%. 1. Calculate the price of the bond are issued at and record the journal entry to record the bond issuance. (show your calculations) 2. Prepare the journal entry for the first interest payment on the bond. On January 1,2020 , Eagle Cy borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of accrued interest and principal on December 31 of each year. 1. Compute the amount of each individual payments 2. Prepare an amortization table for this
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