Question
On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30
On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30 and December 31.
1.Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103.
2.How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
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College Accounting Chapters 1-13
Authors: John Price
14th Edition
007763991X, 9780077639914
