Question
On January 1, 2017, McDonald Company issued 5-year bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each
On January 1, 2017, McDonald Company issued 5-year bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1.
Instructions
a.Prepare the journal entry for the issuance assuming the bonds are issued at 95.
b.Prepare the journal entry for the issuance assuming the bonds are issued at 105.
c. Record all necessary entries on December 31, 2017.
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Accounting And Finance For Your Small Business
Authors: Eric James Burton, Steven M Bragg
1st Edition
9780471323600
