On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds have a coupon interest rate of 5%, payable each July 1 and January 1. Instructions (a) Prepare the journal entry for the issue, assuming the bonds are issued at 98.5. (b) Prepare the journal entry for the issue, assuming the bonds are issued at 104.5.

On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds have a coupon interest rate of 5%, payable each July 1 and January 1. Instructions (a) Prepare the journal entry for the issue, assuming the bonds are issued at 98.5. (b) Prepare the journal entry for the issue, assuming the bonds are issued at 104.5.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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