Question
On January 1, 2019, ABC Company issued $60,000,000 of 20-year, 10.5% bonds when the market rate of interest was 8.5%. Interest is paid semi-annually on
On January 1, 2019, ABC Company issued $60,000,000 of 20-year, 10.5% bonds when the market rate of interest was 8.5%. Interest is paid semi-annually on June 30 and December 31.
Required:
- Using Excel (NOT present value tables), compute the price at which the bond was issued.
- Using Excel and the effective interest method of bond amortization, prepare an amortization table for the entire life of the bond issue.
- Prepare ALL journal entries for the following dates:
January 1, 2019
June 30, 2019
December 31, 2038
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Fraud Smart
Authors: K. H. Spencer Pickett
1st Edition
0470682582, 978-0470682586
