Question
On January 1, Renewable Energy issues bonds that have a $60,000 par value, mature in four years, and pay 19% interest semiannually on June 30
On January 1, Renewable Energy issues bonds that have a $60,000 par value, mature in four years, and pay 19% 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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Internal Audit Efficiency Through Automation
Authors: David Coderre
1st Edition
0470392428, 978-0470392423
