Business
Understanding Financial Accounting
Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds

Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds to finance the expansion of its electron

Question:

Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds to finance the expansion of its electron microscope manufacturing facility in Brantford, Ontario. The bonds pay 4% interest semiannually and were issued at 87.439 to yield 6%.

Required

a. Complete the following table and prepare the related journal entries for the first two interest payments.

Amortization of Bond Carrying Value of Balance of Bond Interest Payment Expense Interest Discount Bonds Date Discount Is

b. What is the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment)?

Transcribed Image Text:

Amortization of Bond Carrying Value of Balance of Bond Interest Payment Expense Interest Discount Bonds Date Discount Issuance Payment 1 Payment 2

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Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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Question Posted: Jul 26, 2019 06:32 AM

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