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On January 1, 2024, Water Mania issues issues $2,300,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December
On January 1, 2024, Water Mania issues issues $2,300,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Required: 1. If the market interest rate is 8%, the bonds will issue at $2,300,000. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. 2. If the market interest rate is 9%, the bonds will issue at $2,150,409. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. 3. If the market interest rate is 7%, the bonds will issue at $2,463,443. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024
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