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Hi, im just looking for the right values in both parts, with an explanation please E10-8 (Static) Recording and Reporting a Bond Issued at a
Hi, im just looking for the right values in both parts, with an explanation please
E10-8 (Static) Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31 . All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet? 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answer: to whole dollars.) What bonds payable amount will Denzel report on its June 30 balance sheet? (Enter all amounts as positive values. Round your intermediate calculations and final answers to whole dollars.)Step by Step Solution
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