$1,000, 12%, 3-year bond issued 12/31/21. Interest paid on 12/31 each year. Bond sold to yield...

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$1,000, 12%, 3-year bond issued 12/31/21. Interest paid on 12/31 each year. Bond sold to yield 10%. Bond issue costs: $90. Required: 1. 2. 3. 4. 5. Compute the sale price of the bond. 12/31/21 Journal Entry. 12/31/22, 23, 24 Journal Entries to pay interest and amortize. Develop amortization table. 12/31/21 12/31/22 12/31/23 12/31/24 Journal Entries 2 12/31/2024 Journal Entry at maturity. Annual 12/31 Journal Entry assuming S/L amortization. $ INT AMORT 3. 4 5. 12/31/21 12/31/22 12/31/23 12/31/24 12/31/24 Year-end Using S/L Cash PV Int. Exp Premium PV B/P Premium Int Exp. Premium B/P Cash Int Exp.. Premium Cash Cash Cash Int. Exp. Premium Cash BIC CV Cash Bond issue Exp. BIC Bond issue Exp. BIC Bond Issue Exp. BIC Bond Issue Exp. BIC $1,000, 12%, 3-year bond issued 12/31/21. Interest paid on 12/31 each year. Bond sold to yield 10%. Bond issue costs: $90. Required: 1. 2. 3. 4. 5. Compute the sale price of the bond. 12/31/21 Journal Entry. 12/31/22, 23, 24 Journal Entries to pay interest and amortize. Develop amortization table. 12/31/21 12/31/22 12/31/23 12/31/24 Journal Entries 2 12/31/2024 Journal Entry at maturity. Annual 12/31 Journal Entry assuming S/L amortization. $ INT AMORT 3. 4 5. 12/31/21 12/31/22 12/31/23 12/31/24 12/31/24 Year-end Using S/L Cash PV Int. Exp Premium PV B/P Premium Int Exp. Premium B/P Cash Int Exp.. Premium Cash Cash Cash Int. Exp. Premium Cash BIC CV Cash Bond issue Exp. BIC Bond issue Exp. BIC Bond Issue Exp. BIC Bond Issue Exp. BIC

Answer rating: 100% (QA)

Computation of Sale Price of Bond on 123121 The bond has a face value of 1000 and an interest rate o... View the full answer