Question
On January 1, a company issues bonds dated January 1 with a par value of $490,000. The bonds mature in 5 years. The contract rate
On January 1, a company issues bonds dated January 1 with a par value of $490,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $470,146. The journal entry to record the issuance of the bond is:
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
16th Edition
007352686X, 978-0073526867
