Question 18 - Journalize the following transactions • AB Corporation issues $5,000,000 of 5 year, 6% bonds at a market rate of 8% receiving cash of $4,594,435. Interest is paid semiannually. 1. Journalize issuance of bonds on July 1, 2019. 2. Journalize interest payment on December 31, 2019, include amortization of Bor Premium or Bond Discounts using straight line. 3. What is the carrying value that should be reported on the Balance Sheet for December 31, 2019. Please provide the detail below.

Question 18 - Journalize the following transactions • AB Corporation issues $5,000,000 of 5 year, 6% bonds at a market rate of 8% receiving cash of $4,594,435. Interest is paid semiannually. 1. Journalize issuance of bonds on July 1, 2019. 2. Journalize interest payment on December 31, 2019, include amortization of Bor Premium or Bond Discounts using straight line. 3. What is the carrying value that should be reported on the Balance Sheet for December 31, 2019. Please provide the detail below.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 74E

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