Question
Prepare journal entries for the issuance of the following bonds. (Treat each issue seperate) On April 1, 2015, the company issued 1,300 bonds, each with
Prepare journal entries for the issuance of the following bonds. (Treat each issue seperate)
On April 1, 2015, the company issued 1,300 bonds, each with a face value of $1,000. The bonds have a coupon rate of 4%, due semi-annually on September 30th and March 31st of each year. The bonds mature on March 31, 2020. Investors expect a yield of 6% for similar bonds.
On June 1, 2016, the company issued 2,300 bonds, each with a face value of $1,000. The bonds have a coupon rate of 7%, due semi-annually on November 30th and May 31st of each year. The bonds mature on May 31, 2024. The yield for similar bonds is 4%.
On October 1, 2014, the company issued 1,000 bonds, each with a face value of $1,000. The bonds have no stated interest rate and do not require any interest payments. The bonds mature on September 30, 2019. The bonds are sold at a price that yields 4%.
please and explain how you get your journal. I believe mine are incorrect.
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