Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) O More Info X aid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $86.000. 1. Seven-year bonds payable with face value of $86.000 and stated interest rate of 10%. paid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $86,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $77,981. 3. Same bonds payable as in assumption 1, but the market interest rate is 8%. The present value of the bonds at issuance is $95,043.

Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) O More Info X aid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $86.000. 1. Seven-year bonds payable with face value of $86.000 and stated interest rate of 10%. paid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $86,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $77,981. 3. Same bonds payable as in assumption 1, but the market interest rate is 8%. The present value of the bonds at issuance is $95,043.

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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