On January 1, 2018, NFB Visual Aids issued $800,000 of its 20-year, 8% bonds. The bonds were
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Required:
1. Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance.
2. Prepare the journal entry to record interest on June 30, 2018 (the first interest payment).
3. Prepare the journal entry to record interest on December 31, 2018 (the second interest payment).
4. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet.
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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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