The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: 1. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2021. 2. Prepare the journal entry to record interest on December 31, 2021 (at the effective rate). 3. Prepare the journal entry to record interest on June 30, 2022 (at the effective rate).

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A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

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A: Requirement 1: Date Account title and explanation Debit($) Credit($) February 1, 2018…

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A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

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Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated…

A: 1.

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A: Solution A journal is used to record the business transation in chronological order. It has two…

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2018, for $967,707. The bonds were dated…

A:

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A:

Q: On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face…

A: 1.

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A: Since we answer only upto three sub-parts, we shall answer the first three. Please resubmit a new…

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Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated…

A: 1.

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.