On January 1, 2014, Garrison Corp, issued 13% bonds dated January 1,2014, with a face amount of
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Required:
1. Determine the price of the bonds at January 1, 2014.
2. Prepare the journal entry to record the bond issuance by Garrison on January 1, 2014.
3. Prepare the journal entry to record interest on December 31, 2015, using the straight-line method.
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1 pricepresent value of the bond present value ...View the full answer
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Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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