Question
Lisa Olsen Architects LLC sells a $500,000, 5 year, 10% Bond at 101% of Face Value. Prepare the journal entry to record the sale; then
Lisa Olsen Architects LLC sells a $500,000, 5 year, 10% Bond at 101% of Face Value. Prepare the journal entry to record the sale; then calculate the total cost of borrowing.
At the end of the fourth year Lisa decides to redeem her companys outstanding bond. Olsen redeems the $500,000 face value bond at 103. Provide the journal entry for this bond redemption transaction.
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
