Question: Problem 2 On January 1 , 2 0 2 4 , Meeman Corporation issued 9 % bonds, dated January 1 , with a face amount

Problem

2

On January

1, 2024,

Meeman Corporation issued

9 %

bonds, dated January

1,

with a face amount

of $

800, 000 .

The bonds sold for $

731, 364

and mature in

20

years. The market yield for bonds of

similar risk and maturity was

10 % .

Interest is paid annually on December

31^{s t} .

Meeman's fiscal

year ends December

31 .

Required:

Record the necessary journal entries for Meeman from January

1, 2024,

through December

31,

2025,

pertaining to the bond. Skip a line between entries.

Record the necessary journal entry for the maturity date of the note, assuming all other interest

entries for the bond have been recorded.

What is the carrying value of the bond at the end of year

2 ?

Answer Box:

What are

2

indicators in the problem that let you know that this is a discount or premium?

Explain.

Problem 2 On January 1,2024, Meeman Corporation issued 9% bonds, dated

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