Question
On January 1, 2015, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $460,000 of 6% bonds, due in 20 years, with
On January 1, 2015, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $460,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
1.If the market interest rate is 6%, the bonds will issue at $460,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015
2.If the market interest rate is 7%, the bonds will issue at $410,883. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
3.If the market interest rate is 5%, the bonds will issue at $517,736. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
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