Question
Salinas Corporation issues $10,000,000 in 20 year bonds on April 1, 2017. The bonds pay interest every 6 months on October 1st and April 1st.
Salinas Corporation issues $10,000,000 in 20 year bonds on April 1, 2017. The bonds pay interest every 6 months on October 1st and April 1st. The bonds have a stated rate of 6% and are priced in the market place at 102.5. The effective interest rate is 5.75%. Salinas has a calendar year fiscal year.
Make entries for the issuance of the bond through April !st, 2018 interest payment.
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Study Guide To Accompany Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition
