Question: Using the information from BE10-14, assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating

Using the information from BE10-14, assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was
In BE10-14
On January 1, 2015, Carvel Corp. issued five-year bonds with a face value of $500,000 and a coupon interest rate of 6%, with interest payable semi-annually. How much would Carvel receive from the sale of these bonds if the market interest rate was
(a) 5%,
(b) 6%,
(c) 7%.

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