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Part A 0.0/5.0 points (graded) Assume that on January 1, 2011 Eva issues a zero-coupon bond for cash. The bond has a face value of
Part A 0.0/5.0 points (graded) Assume that on January 1, 2011 Eva issues a zero-coupon bond for cash. The bond has a face value of $1,000,000, with a 24 year maturity. The market rate at issuance is 9%. Eva has a December 31 fiscal year end. Use the BSE to identify the transactions Eva records to reflect the issuance of the zero coupon bond. Ignore issuance expenses. Assets Liabilities Contra Liabilities + Contributed Capital + Shareholders Equity Part B 0.0/5.0 points (graded) Use the BSE to record the adjusting entry that Eva must make with respect to the zero-coupon bond for the fiscal year ending December 31, 2011. Assets = II Liabilities Contra Liabilities Cont.Capital + Retained Earnings
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