Question
Pineapples Corp. is in need of cash. It issues bonds with a $2 million face value. The bonds have an 8.48% coupon rate. The market
Pineapples Corp. is in need of cash. It issues bonds with a $2 million face value. The bonds have an 8.48% coupon rate. The market rate is 6%. The bonds have a life of 10 years, and are compounded semiannually. Pineapples Corp. issues the bonds on 1/1/2022.
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What is the journal entry at Pineapple Corp. will record on 12/31/22?
options:
|
| Dr. Interest Expense $70,657 Dr. Discount $14,143 Cr. Cash $84,800 |
|
| Dr. Interest Expense $70,657 Dr. Premium $14,143 Cr. Cash $84,800 |
|
| Dr. Interest Expense $84,800 Cr. Cash $84,800 |
|
| Dr. Interest Expense $70,657 Cr. Cash $70,657 |
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Auditor Essentials 100 Concepts Tips Tools And Techniques For Success
Authors: Hernan Murdock
1st Edition
1138036919, 978-1138036918
