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On 1/1/11, Showboat (also called issuer or borrower) issues 10% bonds with a face value of $400,000, that will mature in 10 years, with interest
On 1/1/11, Showboat (also called issuer or borrower) issues 10% bonds with a face value of $400,000, that will mature in 10 years, with interest payments to occur semiannually, on 6/30 and 12/31. We'll show the Journal entries: - If the market rate of interest is 10% (at par) - If the market rate of interest is 12% (at a discount) - If the market rate of interest is 8.5\% (at a premium)
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