Question
On September 1st, Year 1, Dexter's Drive-In issues a bond with a $80,000 face value and a 12% stated interest rate. The bond will pay
On September 1st, Year 1, Dexter's Drive-In issues a bond with a $80,000 face value and a 12% stated interest rate. The bond will pay every four months for two years, ending on September 1st, Year 3. The market interest rate is 9%.
What is the journal entry made by Dexter's Drive-In to record the issuance of the bond on September 1st, Year 1? Some of the amounts have been filled out to help you. Round your final answers to the nearest one decimal place.
What is the journal entry made by Dexter's Drive-In to record the repayment of the principal on September 1st, Year 3?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
