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Power Solutions Ltd. issued a $825,000, 6% bond on January 1, 2021. At that time, the market rate of interest is 7%. The bond
Power Solutions Ltd. issued a $825,000, 6% bond on January 1, 2021. At that time, the market rate of interest is 7%. The bond matures in 6 years and pays interest on June 30th and December 31st. a) Calculate the proceeds of the bond issue. Show your calculator input values. b) Prepare the journal entries for the issuance of the bond and the first interest payment. Date General Journal Account Titles and Explanation Debit I Credit
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
