Question
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7% bonds, due in 10 years, with
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
a,If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
b, If the market interest rate is 6%, the bonds will issue at $580,169. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
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Payroll Accounting
Authors: Bernard J Bieg, Judith A Toland
24th Edition
1285437063, 9781285437064
