Question: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of S100 million. The bonds mature on December 31,2048. Interest

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of S100 million. The bonds mature on December 31,2048. Interest is payable annually on each December 31, beginning in 2019. Part Ji Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 790. Part 2: Assuming the bonds were issues on December 31, 2018, prepare the journal entry to record the issuance on December 31, 2018 and prepare the journal entry to record the first interest payment using the (a) straight line method and (b) the effective interest method

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