Question
On January 1, 2017, Borse Company issued 5-year bonds with a face value of $800,000. The bonds have a 7% contact rate . Fiscal year
On January 1, 2017, Borse Company issued 5-year bonds with a face value of $800,000. The bonds have a 7% contact rate . Fiscal year end is December 31.
[1] Assuming the bonds are issued at 95, interest is paid annually on January 1. Preparing journal entries to record the (a) issuance of the bonds,(b) accrual of interest on the bonds and amortization on December 31, 2017, and (c) pay of interest on January 2018.
[2] Assuming the bonds are issued at 102, interest is paid annually on December 31. Preparing journal entries to record the (a) issuance of the bonds,(b) payment of interest on the bonds and amortization on December 31, 2019.
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