Question
On March 15, 20x5, a company issued bonds, dated December 31, 20x4, with the following characteristics: Face Value $2,000,000 Coupon rate 4.2% Yield to maturity
On March 15, 20x5, a company issued bonds, dated December 31, 20x4, with the following characteristics:
Face Value $2,000,000
Coupon rate 4.2%
Yield to maturity 4.4%
Coupon payment dates Jun 30, Dec 31
Maturity Dec 31, 20x19
The total bond proceeds of $1,974,128 were credited to the bond payable account and coupon payments were charged to the Interest Expense account.
Required- Show how the total bond proceeds were calculatedandprepare the adjusting journal entry at December 31, 20x5. Your adjusting entry should only have two entries: one debit and one credit.
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