On May 1, 2014, Jianhua Corporation issued $120,000 of 10-year, 6% bonds, with interest payable semiannually on

Question:

On May 1, 2014, Jianhua Corporation issued $120,000 of 10-year, 6% bonds, with interest payable semiannually on November 1 and May 1. The bonds were issued to yield a market interest rate of 5%.

(a) Calculate the proceeds from the bonds' issue.

(b) Record the issue of the bonds on May 1, 2014.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...