On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 1031⁄2. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 1031⁄2. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and
pay 12% interest semiannually on June 30 and December 31.
1. Prepare the
2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds
are sold at par?
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