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Question 4 Alpine Inc. issues a $100,000 bond bearing interest at 12% for 108. At the time of issue the market interest rate was 8%.
Question 4 Alpine Inc. issues a $100,000 bond bearing interest at 12% for 108. At the time of issue the market interest rate was 8%. The bond was issued on September 1, 2019 and Alpine's year end is December 31. Interest is paid on September 1 and March 1 or each year. The bond will mature on September 1, 2023. Use the straight line method of amortization if needed. Round all amounts to the nearest dollar, no descriptions are needed. Required: 1) Record journal entry for the issuance of the bond payable. 1 mark 2) Record any December 31, 2019 year end entries if needed. 2 marks 3) Record all entries needed with the March 1, 2020 interest payment. 2 marks Marks Available: 5
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