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How would you get this number without using excel and putting it into a calculator? Demo problem 14-2 On January 1, 2017, Ajax issued 1,200
How would you get this number without using excel and putting it into a calculator?
Demo problem 14-2 On January 1, 2017, Ajax issued 1,200 bonds, each with a face value of $1,000. The bonds have a coupon rate of 8%, due semi-annually on June 30th and December 31st of each year. The bonds mature on December 31, 2019. The yield for similar bonds is 9%. Use the effective interest method. (1) Prepare a journal entry for the issuance of the bonds on January 1, 2017. (2) Prepare journal entries for the payment of interest on June 30, 2017 and December 31,2018. (3) Prepare a journal entry for the retirement of the bonds at maturityStep by Step Solution
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