On May 1, 2014, a $300,000, ten-year, 14% bond was sold to yield 12% plus accrued interest.
Question:
Required:
a. Compute the amount of cash received from the sale of the bond.
b. Prepare the journal entry to record the sale.
c. When preparing the journal entry, you recorded a premium or discount. Discuss why.
Transcribed Image Text:
PV of $1 PV of an Annuity 20 periods 0.311805 0.258419 0.103667 0.072762 20 periods 11.469921 10.594014 7.469444 6.623131 10 periods 0.558395 0.508349 0.321973 0.269744 10 periods 7.360087 7.023582 5.650223 5.216116 6% 7% 12% 14%
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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