1. Downing Company issues $1,000,000, 12%, 10-year bonds on January 1, 2020. The bonds pay interest quarterly on March 31, June 30, September 30 and December 31. The bonds are issued to yield 8%. a) Calculate the issue price of the bonds in dollars b) Calculate the issue price of the bonds as a percent c) Make the journal entry to record the sale of the bond

1. Downing Company issues $1,000,000, 12%, 10-year bonds on January 1, 2020. The bonds pay interest quarterly on March 31, June 30, September 30 and December 31. The bonds are issued to yield 8%. a) Calculate the issue price of the bonds in dollars b) Calculate the issue price of the bonds as a percent c) Make the journal entry to record the sale of the bond

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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