Question
On January 1, 2021, Gyro, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2037 (20
On January 1, 2021, Gyro, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2037 (20 years). The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. (Use appropriate factor(s) from the tables provided.) Required: 1-Determine the price of the bonds at January 1, 2021. 2-Assume Pita Manufacturing purchased the entire issue in a private placement of the bonds. Using the data in requirement 1, prepare the journal entry to record the purchase by Pita.
3- Prepare the journal entry for June 30, 2021 for Pita.
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