Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2017. Interest is payable semi-annually. Instructions Calculate

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Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2017. Interest is payable semi-annually.

Instructions

Calculate the price of the bond and prepare the journal entry to record the issuance of the bond assuming the market rate of interest is:

(a) 4%.

(b) 5%.

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Accounting Principles

ISBN: 978-1119048473

7th Canadian Edition Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: May 17, 2017 09:09 AM

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Laudie issued $400,000 of 5%, 5-year bonds on January 1, 2017. Interest is payable semi-annually. Instructions Calculate

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Step by Step Answer:

a Market interest rate 4 400000 082035 400000 25 898259 417...View the full answer

Accounting Principles

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