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Question 6- Bonds (18 marks, 25 minutes) a) A company issued a $400,000, 6%, 10-year bond to a yield of 8%. Interest is to
Question 6- Bonds (18 marks, 25 minutes) a) A company issued a $400,000, 6%, 10-year bond to a yield of 8%. Interest is to be paid semi-annually. Required: Determine the sales price of the bond. a. b. Prepare the journal entry to record the issuance. C. Prepare the journal entry to record the first interest payment. d. Determine the book value of the bond after the first coupon payment.
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
