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1. Use the present value tables, calculate the issue price and make the journal entry 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 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent

1. Use the present value tables, calculate the issue price and make the journal entry 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 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BONDS 1. Use the present value tables, calculate the issue price and make the journal entry 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 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent D) A 20-year, 10 percent bond issue; the market interest rate is 12 percent E) A 20-year,10 percent bond issue; the market interest rate is 6 percent F) A 15-year, 12 percent bond issue; the market interest rate is 10 percent G) A 15-year, 10 percent bond issue; the market interest rate is 12 percent
Transcribed Image Text:BONDS 1. Use the present value tables, calculate the issue price and make the journal entry 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 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent D) A 20-year, 10 percent bond issue; the market interest rate is 12 percent E) A 20-year,10 percent bond issue; the market interest rate is 6 percent F) A 15-year, 12 percent bond issue; the market interest rate is 10 percent G) A 15-year, 10 percent bond issue; the market interest rate is 12 percent
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