Deng Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2010. The bonds pay
Question:
Deng Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2010. The bonds pay interest twice a year.
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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a 1 Cash 485000 Discount on Bonds Payable 15000 Bonds Payable 500000 2 Semiannua...View the full answer
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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