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Problem 5-Bonding Over Bonds [30 minutes] 28 marks Part-James Bond Corp. issues a $2,000, five-year, 6% bond, dated January 1, 2017, that pays interest
Problem 5-Bonding Over Bonds [30 minutes] 28 marks Part-James Bond Corp. issues a $2,000, five-year, 6% bond, dated January 1, 2017, that pays interest on June 30 and December 31, and is sold at par on March 1, 2017. Provide the necessary journal entry on March 1, 2017, and June 30, 2017. March 1, 2017 (6 marks) Debit Credit June 30, 2017 (6 marks) Debit Credit Part II - This question is independent from Part I. A national fast food chain, Pita Pan, sold a bond on January 1, 2016. Pita Pan has a December 31 year-end. The bonds were all repurchased at par on January 1, 2020. Face value 30,000,000 Coupon rate 12% Coupon dates 12/31 Market rate 15% Time to maturity 6 years Prepare the necessary journal entries to record the following "Question continued on the next page ** Dass 7 of 15
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