A bond with a par value of $1,000,000 was issued at 94 on January 1, 2021. The bond has a three-year life and a coupon interest rate of 5%. The bond interest is paid annually on December 31. What are the journal entries for this bond?
A bond with a par value of $1,000,000 was issued at 94 on January 1, 2021. The bond has a three-year life and a coupon interest rate of 5%. The bond interest is paid annually on December 31. What are the journal entries for this bond?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Not sure on this homework problem. What is the 94?
![A bond with a par value of $1,000,000 was issued at 94 on January
1, 2021. The bond has a three-year life and a coupon interest rate
of 5%. The bond interest is paid annually on December 31. What
are the journal entries for this bond?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a62a942-f271-496e-9988-9c0090c4fa8d%2Fc0c35eb0-c2f0-4461-8cd0-772159c3b5a0%2F13j3y3d_processed.png&w=3840&q=75)
Transcribed Image Text:A bond with a par value of $1,000,000 was issued at 94 on January
1, 2021. The bond has a three-year life and a coupon interest rate
of 5%. The bond interest is paid annually on December 31. What
are the journal entries for this bond?
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