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3 BE14-1 Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semian- nually. At the time of issue, the
3 BE14-1 Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semian- nually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. 34 BE14-2 The Colson Company issued $300,000 of 10% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Colson's jour- nal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. BE14-3 Assume the bonds in BE14-2 were issued at 98. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semiannually. 34 BE14-4 Assume the bonds in BE14-2 were issued at 103. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semiannually. 3 4
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BE141 Issue Price of Whiteside Corporation Bonds The issue price of the bonds needs to be adjusted downwards because the market rate 10 is higher than ...Get Instant Access to Expert-Tailored Solutions
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