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On January 1, 2016, Mania Enterprises issued 10% bonds dated January 1, 2016, with a face amount of $19.9 million. The bonds mature in 2025
On January 1, 2016, Mania Enterprises issued 10% bonds dated January 1, 2016, with a face amount of $19.9 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)...?
On January 1, 2016, Mania Enterprises issued 10% bonds dated January 1, 2016, with a face amount of $19.9 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars.) Required: 1. Determine the price of the bonds at January 1, 2016. Bond value J 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of bonds by Mania. Note: Enter debits before credits. Date January 01, 2016 General Journal Debit Credit Record entry Clear entry View general journalStep by Step Solution
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