VB - On January 1, 2017, ABC Company issued a $400,000, 6%, 10-year bond at the...
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VB - On January 1, 2017, ABC Company issued a $400,000, 6%, 10-year bond at the yield of 8%. Interest is to be paid semiannually on July 1 and December 31 each year. The bond is sold to investors for 86.40999. Required: a) Calculate the cash proceeds to ABC Company from the bond sale? (1 mark) b) Prepare the journal entry ABC Company makes to record the issuance of the bond on January 1, 2017. (2 marks) c) Prepare the journal entry(ies) ABC Company makes to record the interest payments for the entire year 2017. (3 marks) d) Determine the carrying value of the bond on ABC Company's books at January 1, 2018. (2 marks) VB - On January 1, 2017, ABC Company issued a $400,000, 6%, 10-year bond at the yield of 8%. Interest is to be paid semiannually on July 1 and December 31 each year. The bond is sold to investors for 86.40999. Required: a) Calculate the cash proceeds to ABC Company from the bond sale? (1 mark) b) Prepare the journal entry ABC Company makes to record the issuance of the bond on January 1, 2017. (2 marks) c) Prepare the journal entry(ies) ABC Company makes to record the interest payments for the entire year 2017. (3 marks) d) Determine the carrying value of the bond on ABC Company's books at January 1, 2018. (2 marks)
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Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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