. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1. Interest will be paid annualy on January 1, On the day the bonds are issued, the market rate was 3%, resulting in a bond price of $10.853,000. Prepare all of the journal entries to record issuance of these bonds and any end of year adjustments for Year 1.
. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1. Interest will be paid annualy on January 1, On the day the bonds are issued, the market rate was 3%, resulting in a bond price of $10.853,000. Prepare all of the journal entries to record issuance of these bonds and any end of year adjustments for Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![3. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1
Interest will be paid annually on January 1, On the day the bonds are issued, the market
rate was 3%, resulting in a bond price of $10,853,000. Prepare all of the journal entries to
record issuance of these bonds and any end of year adjustments for Year 1.
1/1/X1
12/31/X1
4. Please record all of the necessary journal entries for Year 2.
1/1/X2
12/31/X2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950cfff5-7684-431b-92fd-5082c51417ce%2Ff1aa9420-7878-4569-b6b2-3f7fbcc6f1e8%2Fxyprtx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1
Interest will be paid annually on January 1, On the day the bonds are issued, the market
rate was 3%, resulting in a bond price of $10,853,000. Prepare all of the journal entries to
record issuance of these bonds and any end of year adjustments for Year 1.
1/1/X1
12/31/X1
4. Please record all of the necessary journal entries for Year 2.
1/1/X2
12/31/X2
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