Herjavec, Inc. issued a $200,000, 4%, 5-year bond on January 1, 2020. The market rate of interest
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Herjavec, Inc. issued a $200,000, 4%, 5-year bond on January 1, 2020. The market rate of interest at issuance was 5%. The bonds make semi-annual interest payments on July 1st and January 1st. The corporation's fiscal year ends on December 31. The corporation accounts for the bonds using the effective-interest method. Calculate the price of the bond at insuance, b) write the journal entry to record the insuance of the bonds.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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