Question
On July 1, 2020 Pina Limited issued bonds with a face value of $950,000 due in 20 years, paying interest at a face rate of
On July 1, 2020 Pina Limited issued bonds with a face value of $950,000 due in 20 years, paying interest at a face rate of 9% on January 1 and July 1 each year. The bonds were issued to yield 10%. The companys year-end was September 30. The company used the effective interest method of amortization.
1.Prepare the journal entry on January 1, 2021 when Pina makes the first payment of interest on the bonds
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
