Question
On March 31, 2023 Panda Inc issued a 5-year, 8%, $1,000,000 bond to raise financing for new machinery. The bond is payable semi-annually and market
On March 31, 2023 Panda Inc issued a 5-year, 8%, $1,000,000 bond to raise financing for new machinery. The bond is payable semi-annually and market rate is 4%. The Present value of the bond at date of issuance was $1,179,652.
However, a junior accountant recorded the book value of the bond as $1,175,652 in the bond payable account. What adjusting entry should be made to correct the bond payable account?
Step by Step Solution
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To correct the bond payable account to reflect the correct book val...
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
