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Galiano Getaway Co. (GG) issued bonds on December 1, 2019 with the following traits: Face Value Duration Coupon Rate Market Rate Price Issued at $1,000,000
Galiano Getaway Co. (GG) issued bonds on December 1, 2019 with the following traits: Face Value Duration Coupon Rate Market Rate Price Issued at $1,000,000 5 Years 3% 4% $ 955,087 Semi-Annual Paid on June 1 & December 1 Interest Payments GG has a November 30 Year End. Required: 1) Record the following journal entries: - Bonds being issue on December 1, 2019 (1 mark) - Interest payment on June 1, 2020 (3 marks) Accrual of interest on November 30, 2020 (3 marks) 2) Assume the following scenario and post the journal entry: - Imagine that the bond was issued at a price of $1,089,826 and the coupon rate was 6%. With all other variables (including market rate) remaining the same as the original question, record the payment of interest on June 1, 2020
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