Question: On 1 / 1 / 2 0 , Bond Co issued 6 , 0 0 0 units of its $ 1 , 0 0 0

On 1/1/20, Bond Co issued 6,000 units of its $1,00010-year 9% bonds.
The bonds pay interest annually and, at the date of issuance the market rate was 10%.
INSTRUCTIONS:
A. Determine the issuance price of the bonds
B. Prepare the journal entry to record the issuance of the bonds
C. Prepare the journal entry to record the 2020 interest expense
D. Prepare the journal entry to record the retirement of the bond at maturity
E. Assume INSTEAD that the bonds were redeemed after 3 years @ 105,
prepare the journal entry to record the early redemption of the bonds @ 105
A. price of bond is calculated by adding together the PV of the principal and the PV of the interest annuity

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