Pueblo Company issued 500,000 of 5-year, 8% bonds at 97 on January 1, 2020. The bonds pay
Question:
Pueblo Company issued €500,000 of 5-year, 8% bonds at 97 on January 1, 2020. The bonds pay interest annually.
Instructions
a. 1. Prepare the journal entry to record the issuance of the bonds.
2. Compute the total cost of borrowing for these bonds.
b. Repeat the requirements from part (a), assuming the bonds were issued at 105.
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Step by Step Answer:
a 1 Par value of bonds 500000 Issue price 97 Cash receipts from issue of bonds 500000 x 97 485000 Di...View the full answer
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ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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