Question
Using the effective method for recoding interest.... ABC Co. issued 11% bonds with a face amount of $8 million on Jan. 1, 2020, maturing Dec.
Using the effective method for recoding interest.... ABC Co. issued 11% bonds with a face amount of $8 million on Jan. 1, 2020, maturing Dec. 31, 2039. The market rate is 12%. Interest is paid twice a year on 6/30 and 12/31.
1. Prepare journal entries for:
- issuance on 1/1/2020
- recording interest on 6/30/2020
- recording interest on 12/31/2020
- recording interest on 6/30/2039
- payment of interest and principle on 12/31/2039.
2. What is the selling price using Excels PV function?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
