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Need help on #3. A-D Need help on #3 A-D Question Help On January 1, 2018 Doctors Credit Union (DCU) issued 7%, 20-year bonds payable
Need help on #3. A-D
Need help on #3 A-D
Question Help On January 1, 2018 Doctors Credit Union (DCU) issued 7%, 20-year bonds payable with face value of $200.000. The bonds pay interest on June 30 and December 31 Read the requirements Requirement 1. If the market interest rate is 5% when DCU issues its bonds will the bonds be priced at fad The 7% bonds issued when the market interest rate is 5% will be priced at They are 0 Requirements -X Requirement 2. If the market interest rate is 8% when DCU issues its bonds will the bonds be priced at fal The 7% bonds issued when the market interest rate is 89% will be priced at They are rss on the Requirement 3. The issue price of the bonds is 93. Journalize the bond transactions. Assume bonds paya last line of the journal entry Round your answers to the nearest whole dollar) a. Journalize the issuance of the bonds on January 1. 2018 Date Accounts and Explanation Debit Credit 2018 1. If the market interest rate is 5% when DCU issues its bonds, will the bonds be priced at face value at a premium, or at a discount? Explain 2. If the market interest rate is 8% when DCU issues its bonds, will the bonds be priced at face value at a premium, or at a discount? Explain 3. The issue price of the bonds is 93. Journalize the following bond transactions a. Issuance of the bonds on January 1, 2018 b. Payment of interest and amortization on June 30, 2018 C. Payment of interest and amortization on December 31, 2018 d. Retirement of the bond al maturity on December 31, 2037 assuming the last interest payment has already been recorded Jan 1 Print Done Choose from any list or enter any number in the input fields and then continue to the next question Type here to search 3 D + 4x 1072019Step by Step Solution
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