On March 31, 2023 Panda Inc issued a 5-year, 8%, $1,000,000 bond to raise financing for new machinery. The bond is payable semi-annually and market rate is 4%. The Present value of the bond at date of issuance was $1,179,652.

However, a junior accountant recorded the book value of the bond as $1,175,652 in the bond payable account. What adjusting entry should be made to correct the bond payable account?

Answer rating: 100% (QA)

To correct the bond payable account to reflect the correct book val... View the full answer