Use the present value tables to calculate the issue price in dollar and as a percentage and
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Question:
Use the present value tables to calculate the issue price in dollar and as a percentage and make the journal entry to record the issuance of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31.
A) A 15-year, 12 percent bond issue; the market interest rate is 10 percent
B) A 15-year, 10 percent bond issue; the market interest rate is 12 percent.
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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