On 1/1/2020 Eliphaz Co. issued 2,000 - $1,000 10-year, 12% bonds to yield 10%. Interest is paid
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On 1/1/2020 Eliphaz Co. issued 2,000 - $1,000 10-year, 12% bonds to yield 10%. Interest is paid annually on December 31 each year. The PV of $1 lump sum is .38554 and the PV of an ordinary annuity is 6.14457. REQUIRED: Complete A through E component A. Calculate the Present Value of the bond – show your work. B. Record the journal entries associated with the initial issuance of bonds. C. Prepare the amortization schedule for the first 4 years D. Record the yr-end entries for 2020 and 2021. Assume the same fact pattern as above EXCEPT the bond was actually issued on 4/1/2020. E. Show the journal entry with correct amounts that will be recorded on 4/1/2020 -show your work
Related Book For
Accounting Theory Conceptual Issues in a Political and Economic Environment
ISBN: 978-1412991698
8th edition
Authors: Harry Wolk, James Dodd, John Rozycki
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