On January 1, 2015, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000

Question:

On January 1, 2015, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.

Required:
1. If the market interest rate is 8%, the bonds will issue at $600,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
2. If the market interest rate is 9%, the bonds will issue at $544,795. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.
3. If the market interest rate is 7%, the bonds will issue at $664,065. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

Question Posted: