UTISCIVOLACI CISC. AISA 14.0 ND Page of 2 Accounting 202 Present Value, Bonds, LT Liabilities Problems 1 & 2 Problem 1 On January 1, 2010, BC Company issues $100,000 of 7% debentures dated Jan 1, 2010. They pay interest each December 31. Bonds mature on January 1, 2015. Assume fiscal calendar years for buyer and issuer. Show the journal entries for 1) Recording of Bonds on Jan 1, 2010 il) Interest Payment on December 31, 2010 a) Market Interest Rate is 7% b) Market Interest Rate is 6% c) Market Interest Rate is 8% and Interest Amortization is straight line Problem 2 All the above, except Interest Amortization is the effective interest method Previous