Goth Inc. issued a group of bonds on January 1, 2023, that pay interest semiannually on June

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Goth Inc. issued a group of bonds on January 1, 2023, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $100,000, the annual contract rate is 10%, and the bonds mature in 10 years.

Required

For each of these three situations,

(a) Determine the issue price of the bonds,

(b) Show the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was:

a. 8%

b. 10%

c. 12%

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Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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Question Posted: Jul 31, 2023 02:04 AM

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Goth Inc. issued a group of bonds on January 1, 2023, that pay interest semiannually on June

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Part a a Cash Flow Par value Interest annuity Total PMT 5000 IY 8 2 per...View the full answer

Fundamental Accounting Principles Volume 2

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