12) A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Record the journal entry for the sale of these bonds. Then, using the straight-line method, record the entry for the amount of interest expense for the first semiannual interest period.
12) A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Record the journal entry for the sale of these bonds. Then, using the straight-line method, record the entry for the amount of interest expense for the first semiannual interest period.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...
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