Question
In July 1 1988, A Group issues $1,000,000 of ten-year, 8% bonds to yield 9. The bonds pay interest semi-annually on December 31. The bond
In July 1 1988, A Group issues $1,000,000 of ten-year, 8% bonds to yield 9. The bonds pay interest semi-annually on December 31. The bond proceeds were $960,436. The bond interest payment for 1988 is 40000. Can you please explain? It should be 1M * 0.08 divided by 2 due to the time line of July to Dec correct?
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
