Question
On July 1, 2017, Waubonsee Ltd. issued $3.2 million of 10-year, 6% bonds at $3,449,427. This price resulted in a market interest rate of 5%.
On July 1, 2017, Waubonsee Ltd. issued $3.2 million of 10-year, 6% bonds at $3,449,427. This price resulted in a market interest rate of 5%. The bonds pay semi-annual interest on July 1 and January 1, and Waubonsee has a December 31 year end.
1) Assume that on January 1, 2018, after payment of the interest, Waubonsee Ltd. redeems all of the bonds at 102. Record the redemption of the bonds.
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Auditing
Authors: David Ricchiute
8th Edition
0324226292, 978-0324226294
