Assume Kristi Corporation issued a 10%, $1M bond due in 5 years. The bond sold on January 2022, to yield 8%. The company pays interest on June 30th and December 31st, semianually. 4% 1) Determine the issue price of the bond. 1,081, OS 2 2) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 12/31. 3) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 10/31.
Assume Kristi Corporation issued a 10%, $1M bond due in 5 years. The bond sold on January 2022, to yield 8%. The company pays interest on June 30th and December 31st, semianually. 4% 1) Determine the issue price of the bond. 1,081, OS 2 2) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 12/31. 3) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 10/31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume Kristi Corporation issued a 10%, $1M bond due in 5 years. The bond sold on January 1,
2022, to yield 8%. The company pays interest on June 30th and December 31st, Semianually.
4%
1) Determine the issue price of the bond. 1,081, OS
2) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 12/31.
3) Record the necessary journal entries for 2022 assuming the company's fiscal year end is 10/31.
#1 Issue Price: Show calculations =
1,081,105 CV.-
# 2 Journal Entries for ALL of calendar year 2022 if
FYE is 12/31/22. Show calculations and label dates.
#3 Journal Entries for ALL of calendar year 2022 if
FYE is 10/31/22. Show calculations and label dates.
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