Question

On January 1, 2015, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.

Required:
1. If the market interest rate is 8%, the bonds will issue at $600,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
2. If the market interest rate is 9%, the bonds will issue at $544,795. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
3. If the market interest rate is 7%, the bonds will issue at $664,065. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.



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  • CreatedJuly 15, 2014
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