. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1. Interest will be paid annualy on January 1, On the day the bonds are issued, the market rate was 3%, resulting in a bond price of $10.853,000. Prepare all of the journal entries to record issuance of these bonds and any end of year adjustments for Year 1.

. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1. Interest will be paid annualy on January 1, On the day the bonds are issued, the market rate was 3%, resulting in a bond price of $10.853,000. Prepare all of the journal entries to record issuance of these bonds and any end of year adjustments for Year 1.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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