Scenario 1 On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market rate was 10%. The bonds pay semi-annual interest on July 1 and December 31. Required What is the entry to record the issuance of the bond on January 1, 2018? What is the entry to record the first interest payment on July 1, 2018? What is the carrying amount of the bond on January 1, 2022?
Scenario 1
On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market rate was 10%. The bonds pay semi-annual interest on July 1 and December 31.
Required
What is the entry to record the issuance of the bond on January 1, 2018?
What is the entry to record the first interest payment on July 1, 2018?
What is the carrying amount of the bond on January 1, 2022?
Scenario 2
On January 1, 2020, Harvey Inc. made available $100,000 of 20 years, 10%
Required
What is the entry to record the issuance of the bond on January 1, 2020?
What is the entry to record the purchase of the bond on June 1, 2020?
What is the entry to record the first interest payment on July 1, 2020?
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