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On January 1, 2021, Antic Inc. issued 15-year bonds with a face value of $15,000,000 and a contract rate of 8% payable semi- annually
On January 1, 2021, Antic Inc. issued 15-year bonds with a face value of $15,000,000 and a contract rate of 8% payable semi- annually on July 1st and January 1st. The effective-interest rate on the bonds is 10%. A) How much cash will the company receive when it issues the bonds? B) What is the journal entry to accrue interest on 12/31/20217 The company uses the effective interest rate method to amortize bond premiums and discounts. You may omit the journal entry description.
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Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
