Grove Corporation issued 800,000 of 8% bonds on October 1, 2019, due on October 1, 2021 for
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Question:
Grove Corporation issued £800,000 of 8% bonds on October 1, 2019, due on October 1, 2021 for £785,650. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 9% effective annual interest. Grove Corporation closes its books annually on December 31. Use the effective-interest method.
Instructions
a. Show how to determine the selling price and indicate PV factors.
b. Complete the amortization schedule for the dates indicated. (Round all answers to the nearest dollar.)
c. Prepare the adjusting entry for December 31, 2020.
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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