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On January 1, 2020, Kelowa Corporation issues 4-year, $300,000 bonds at a 4% stated rate. Periodic payments are made semiannually. The bonds are sold
On January 1, 2020, Kelowa Corporation issues 4-year, $300,000 bonds at a 4% stated rate. Periodic payments are made semiannually. The bonds are sold to yield an 3% effective interest rate. Use the effective-interest method. If the category decreases include a sign in front of your number. If the category increases put a + in front of your number. Do not include any dollar signs. For example, +1,000 if the impact is an increase and -1,000 if the impact is a decrease. If no impact, then just write '0'. Round to the nearest whole number. 1. What is the impact on Kelowa's balance sheet at issuance? (2 points) Asset = Liabilities = Equity
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