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On January 1, 2020, when market interest rates were 9%, Graham Company received $103,956 when they issued bonds with a face value of $100,000 and
On January 1, 2020, when market interest rates were 9%, Graham Company received $103,956 when they issued bonds with a face value of $100,000 and a coupon rate of 10%. The bonds pay interest semi-annually on July 16 and January 14. Graham Company has a December 31 year end. Required (parts a, b, c & d): Prepare any necessary journal entries required for the following dates. If no entry is required please state no entry". You may omit any journal entry explanations. Please round all numbers to whole numbers. a) The issuance of the bonds on January 1, 2020. b) The payment of interest on July 1, 2020. c) Any journal entry(ies) on December 31st, 2020, the company's year-end, including any fair value adjustment. (note: the bonds were trading at 102 at December 31, 2020). d) The payment of interest on January 1, 2021
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