Lemond Corporation is planning to issue bonds with a face value of $200,000 and a coupon rate of 10 percent. The bonds mature in three years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Lemond uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. Required: 1. Provide the journal entry to record the issuance of the bonds. 2. Provide the journal entry to record the interest payment on June 30 and December 31 of this year. 3. What bonds payable amount will Lemond report on this year’s December 31 balance sheet?
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Lemond Corporation is planning to issue bonds with a face value of $200,000 and a coupon rate of 10 percent. The bonds mature in three years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Lemond uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent.
Required:
1. Provide the
2. Provide the journal entry to record the interest payment on June 30 and December 31 of this year.
3. What bonds payable amount will Lemond report on this year’s December 31
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