Question
Prepare the journal entry for the issuance of the bonds. Assume the bonds are issued for cash on January 1, 2017. Enviro Company issues 10%,
Prepare the journal entry for the issuance of the bonds. Assume the bonds are issued for cash on January 1, 2017.
Enviro Company issues 10%, 10-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 88 1/2.
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Company issues 10.00%, 15-year bonds with a par value of $330,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 119 1/2.
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