Question
Jimmy Company issued a $100,000 dollar bond paying interest annually.The interest rate payable is 6% and the market rate is 8%. 1)What is the price
Jimmy Company issued a $100,000 dollar bond paying interest annually.The interest rate payable is 6% and the market rate is 8%.
1)What is the price of the bond and please make the correct journal entry to record the sale of the bond.
2)Now use the effective interest rate to amortize the discount or premium and then make the interest payment journal entry in year one and two.
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
18th edition
1292162406, 978-1292162409
