In order to raise capital, John Deere issued five year, $50,000, 7% bonds on January 2, 2020, with the interest payable annually each Dec 31. The issue price was $54,330 based on an 5% market rate. Rounding calculations to the nearest whole dollar, what is the journal entries records the 2020 interest expense?
In order to raise capital, John Deere issued five year, $50,000, 7% bonds on January 2, 2020, with the interest payable annually each Dec 31. The issue price was $54,330 based on an 5% market rate. Rounding calculations to the nearest whole dollar, what is the journal entries records the 2020 interest expense?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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In order to raise capital, John Deere issued five year, $50,000, 7% bonds on January 2, 2020, with the interest payable annually each Dec 31. The issue price was $54,330 based on an 5% market rate.
Rounding calculations to the nearest whole dollar, what is the journal entries records the 2020 interest expense?
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