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VWXCorporationissued6-yearbondswithafacevalueof$600,000onJanuary1st,2023,with a stated interest rate of 6% payable semi-annually. The market interest rate at the time of issuance was 5%. Calculate: a) Issue price of
VWX Corporation issued 6-year bonds with a face value of $600,000 on January 1st, 2023, with a stated interest rate of 6% payable semi-annually. The market interest rate at the time of issuance was 5%. Calculate: a) Issue price of the bonds. b) Total interest expense over the life of the bonds. c) Carrying amount of the bonds after three semi-annual interest payments. d) Journal entry to record the first semi-annual interest payment.
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