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On March 1, 2022, ACME Incorporated issued $350,000, 4.5% bonds due in 7 years. The interest on the bonds is payable quarterly. On the
On March 1, 2022, ACME Incorporated issued $350,000, 4.5% bonds due in 7 years. The interest on the bonds is payable quarterly. On the issue date, the market rate of interest was 5%. Required: 1. Calculate the issue price of the bond. Show your work. (2 marks) Round all answers to the nearest dollar. 2. Prepare the journal entry to record the issuance of the bond. (1 mark) 3. Calculate the total cost of borrowing. (2 marks)
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
1st Canadian Edition
978-0132490252, 132490250, 978-0176223311
