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Micro Company issued 10 year bonds on January 1, 2019. The face value of the bonds is $300,000. The stated interest rate on the bonds
Micro Company issued 10 year bonds on January 1, 2019. The face value of the bonds is $300,000. The stated interest rate on the bonds is 8 percent. The market rate of interest at the time of issuance was 10 percent. The bonds pay interest semi-annually on June 30th and December 31st.
REQUIRED:
- Calculate the issuance price of the bonds (Round to the nearest dollar).
- Record the journal entry for the issuance of the bonds on January 1, 2019.
- Record the journal entry to record the first interest payment on June 30, 2019.
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