Question
The question does not need any more information. On February 15, 20x1, a company issued bonds, dated December 31, 20x0, with the following characteristics: Face
The question does not need any more information.
On February 15, 20x1, a company issued bonds, dated December 31, 20x0, with the following characteristics:
| Face Value | $10,000,000 |
| Coupon rate | 3% |
| Yield to maturity | 3.3% |
| Coupon payment dates | Jun 30, Dec 31 |
| Maturity | Dec 31, 20x15 |
The total bond proceeds of $9,686,645 were credited to the bond payable account and coupon payments were charged to the Interest Expense account.
Required Show how the total bond proceeds were calculated and prepare the adjusting journal entry at December 31, 20x1. Your adjusting entry should only have two entries: one debit and one credit.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
19th Edition
0538869720, 978-0538869720
