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Part c and d as well on journalization Requirements 1. If the market interest rate is 4.5 percent when Washington Corp. issues its bonds, will
Part c and d as well on journalization
Requirements 1. If the market interest rate is 4.5 percent when Washington Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 2. If the market interest rate is 6 percent when Washington Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. 3. Assume that the issue price of the bonds is $103,000. Journalize the following bonds payable transactions (round amounts to the nearest dollar): a. Issuance of the bonds on April 1, 2018 b. Payment of interest and amortization of premium on September 30, 2018 c. Accrual of interest and amortization of premium on December 31, 2018 d. Payment of interest and amortization of premium on March 31, 2019 Print Done a. Issuance of the bonds on April 1, 2018. Date Debit Credit Apr 1, 2018 Journal Entry Accounts Cash Premium on bonds payable Bonds payable 103,000 3,000 100,000 b. Payment of interest and amortization of premium on September 30, 2018. Journal Entry Date Accounts Debit Credit Sep 30, 2018Step by Step Solution
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