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On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond?

On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond?

FINANCIAL ACCOUNTING
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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On January 1, 2018, Watch Works Incorporated (WI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond? Which of the following financial statement items is impacted in this transaction? The problem is solving for: The calculation involves: EXCEL® Excel Formula Variables Tolal Journalize the issuance of the bonds payable. January 1, 2018 Accounts Debit Credit
Transcribed Image Text:On January 1, 2018, Watch Works Incorporated (WI) issued $77,000 par value, 8%, four-year bonds that mature on December 31, 2021. WWI will pay interest semiannually on June 30 and December 31. On the date WWI issued the bonds, the market rate of interest was 1096. The company's fiscal year ends on December 31. What is the issue price of this bond? Which of the following financial statement items is impacted in this transaction? The problem is solving for: The calculation involves: EXCEL® Excel Formula Variables Tolal Journalize the issuance of the bonds payable. January 1, 2018 Accounts Debit Credit
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