Question: AC 112 Assignment #2 Bonds Baxter Co. decides to issue the following bond: A $100,000 20-year Bond bearing 6% interest. Interest payments are to be

AC 112 Assignment #2 Bonds Baxter Co. decides to issue the

AC 112 Assignment #2 Bonds Baxter Co. decides to issue the following bond: A $100,000 20-year Bond bearing 6% interest. Interest payments are to be made semi-annually. The current market rate for a similar bond is 8% Required: 1. Determine the issue price for the bonds. 2. Prepare the journal entry to record the issue of the bond. 3. Prepare the journal entry to record the first semi-annual interest payment assuming straight-line amortization

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