On December 31, 201x, Shuijing Enterprise issued a 6-year corporate bond with a face value of $1,400,
Question:
On December 31, 201x, Shuijing Enterprise issued a 6-year corporate bond with a face value of $1,400, an annual interest rate of 6%, and a market interest rate of 5%. The debt interest is paid once a year.
1. What is the issue price of Shuijing Enterprises corporate bonds? (The present value of the annuity and the present value of compound interest should be rounded to the second decimal place. The final issue Please round up the price to the nearest whole number)
2. Please use the gross method for the entry on the issue date
3. Please use the gross method to make an entry for the interest expense of the corporate bond ×2 years and ×3 years. Please use the effective interest rate method to calculate the interest. (Interest expense Please round to the nearest whole number)
4. Please make an entry for the redemption of corporate bonds at maturity.
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater