Question
Use the following information for all questions related to McGill College. McGill would like to build a new gym for its campus and decides to
Use the following information for all questions related to McGill College.
McGill would like to build a new gym for its campus and decides to issue bonds in order to raise money. On January 1st, Year 1, McGill issues a four-year, $10,000 face value bond with a 6% stated annual interest rate. Interest is payable semi-annually on the last day of June and the last day of December. The market annual interest rate is 8%.
Calculate the carrying value of the bond on the last day of June, Year 2, after all adjusting entries have been made. Round your final answer to the nearest two decimal places.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
4th edition
77862376, 978-0077862374
