Question: Aa Contents ALTERNATE PROBLEMS Problem 14-1B Calculating bond prices and recording Issuance with Journal entries J Lo3, 9 5, 2 6 CHECK FIGURES: 1a. $113,592;

 Aa Contents ALTERNATE PROBLEMS Problem 14-1B Calculating bond prices and recording

Aa Contents ALTERNATE PROBLEMS Problem 14-1B Calculating bond prices and recording Issuance with Journal entries J Lo3, 9 5, 2 6 CHECK FIGURES: 1a. $113,592; 2a. $100,000; 3a. $88,530 Goth Inc. issued a group of bonds on January 1, 2023, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $100,000, the annual contract rate is 10%, and the bonds mature in 10 years. Required For each of these three situations, (a) determine the issue price of the bonds, and (b) show the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was: a. 8% b. 10% c. 12% Problem 14-2B Allocating Interest and amortizing a bond discount (using business calculator PV function) _ LO4, 2 5 excel CHECK FIGURE: 1. Cash = $922,428 Wind-Electric Corp. issued $940,000 of bonds that pay 9.7% annual interest with two semiannual payments. The date of issuance was January 1, 2023, and the interest is paid on June 30 and December 31. The bonds mature after 10 years and were issued at the price of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!