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On January 1, 2021, Antic Inc. issued 20-year bonds with a face value of $20,000,000 and a contract rate of 12% payable semi-annually on
On January 1, 2021, Antic Inc. issued 20-year bonds with a face value of $20,000,000 and a contract rate of 12% 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 12/31/2021? 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 Cost Accounting
Authors: Edward J. Vanderbeck, Maria Mitchell
17th edition
9781305480520, 1305087402, 130548052X, 978-1305087408
