On January 1, 2014, XYZ Co. issued ten-year bonds with a face value of $1,000,000 and...
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On January 1, 2014, XYZ Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 11 %, payable semiannually on July1st and January 1" each year. The Bonds are issued to yield 9% Answer the following: 1- What would be the Proceeds from issuance? 2- Interest Expense for the year 2021 3- Carrying amount of the Bonds at December31,2020. -4- Prepare the required Journal Entry if XYZ Decide to call the bonds at December31,2015, with a recall Price of 101. 5- Indicate with explanation whether calling the bonds with Gain/Loss is a good/bad indication for the issuer? On January 1, 2014, XYZ Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 11 %, payable semiannually on July1st and January 1" each year. The Bonds are issued to yield 9% Answer the following: 1- What would be the Proceeds from issuance? 2- Interest Expense for the year 2021 3- Carrying amount of the Bonds at December31,2020. -4- Prepare the required Journal Entry if XYZ Decide to call the bonds at December31,2015, with a recall Price of 101. 5- Indicate with explanation whether calling the bonds with Gain/Loss is a good/bad indication for the issuer?
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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