Question
On 1/1/19 XYZ issued $300,000 in 5 year bonds payable for $322,684. The stated rate of interest on the bonds was 12% while the market
On 1/1/19 XYZ issued $300,000 in 5 year bonds payable for $322,684. The stated rate of interest on the bonds was 12% while the market rate of interest was 10%. Interest is paid annually on December 31. The effective interest method is used.
What would the journal entries look like?
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
