Citywide Company issues bonds with a par value of $80,000. The bonds mature in six years and

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Citywide Company issues bonds with a par value of $80,000. The bonds mature in six years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%.

1. Compute the price of the bonds as of their issue date.

2. Prepare the journal entry to record the bonds' issuance.

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Financial Accounting Information For Decisions

ISBN: 9781260705584

10th Edition

Authors: John J. Wild

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Posted Date: Jun 15, 2022 03:33 AM

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Citywide Company issues bonds with a par value of $80,000. The bonds mature in six years and

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1Price of the bonds as of their issue date The Price of the is the Present Value of th... View the full answer

Financial Accounting Information For Decisions

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