Question
Metlock Ltd. issued $580,000 of 15-year, 7.50% bonds on January 1, 2022, when the market interest rate was 6.50%. The cash received at the issuance
Metlock Ltd. issued $580,000 of 15-year, 7.50% bonds on January 1, 2022, when the market interest rate was 6.50%. The cash received at the issuance of the bond was $635,047.56. Interest is payable semi-annually on July 1 and January 1. Metlock has a December 31 year end.
Record the issue of the bonds and the first interest payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 15.75.)
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