Question
Journalize the following transactions AB Corporation issues $5,000,000 of 5 year, 6% bonds at a market rate of 8% receiving cash of $4,594,435. Interest is
Journalize the following transactions
AB Corporation issues $5,000,000 of 5 year, 6% bonds at a market rate of 8% receiving cash of $4,594,435. Interest is paid semiannually.
1. Journalize issuance of bonds on July 1, 2019.
2. Journalize interest payment on December 31, 2019, include amortization of Bond Premium or Bond Discounts using straight line.
3. What is the carrying value that should be reported on the Balance Sheet for December 31, 2019.
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Financial Accounting The Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
6th Edition
0324655231, 978-0324655230
