On January 1, 2009, Donovan Company issued $300,000 in bonds that mature in five years. The bonds
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1. What was the issue price on January 1, 2009?
2. What amount of interest should be recorded on June 30, 2009? How much on December 31, 2009?
3. What amount of cash interest should be paid on June 30, 2009? How much on December 31, 2009?
4. What is the book value of the bonds on December 31, 2009? What is the amount on December 31, 2010?
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Req 1 Interest 300000 x 8 24000 2 12000 Present value 300000 x 6756 202680 120...View the full answer
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