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Olallieberry Corp. issued $350,000 worth of 5% bonds on January 1, 20x2, which will mature on December 31, 20x3. The market rate on the date
- Olallieberry Corp. issued $350,000 worth of 5% bonds on January 1, 20x2, which will mature on December 31, 20x3. The market rate on the date of issuance is 6%. Interest will be paid semiannually on June 30 and December 31.
Required:
- Calculate the purchase price of the bonds.
- Does the price make sense? Explain.
- How will the bond value appear in the newspaper?
- Record all journal entries necessary from the date of issue until the maturity date. Be sure to show all calculations.
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