Regarding the bond issued by DFC abovePrepare (in good form) the Semi Annual journal entry needed to be recorded by DFCfor the cash payment required.Upload your journal and calculations on your PDF.What is the TOTAL interest expense related to this bond over the entire term or lifeof the bond? BOND PRICING #1 for Debt Financing CompanyDebt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000.The bond has a 15 year maturity date and requires SEMI ANNUAL interest payments. The bond'sstated interest rate is 3% and the current market interest rate is 4%.Hint: remember to set your expectationsPV tables will be needed. Do not round your PVIF, but round answers to whole dollars.Required:Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal forgrading on your PDF upload.Your multiple step calculations must also be shown ..To get a preliminary idea of how you did you may enter your calculated amount for cash received atissuance

Prepare (in good form) the Semi Annual journal entry needed to be recorded by DFC for the cash payment required. Upload your journal and calculations on your PDF. What is the TOTAL interest expense related to this bond over the entire term or life of the bond?

Prepare (in good form) the Semi Annual journal entry needed to be recorded by DFC for the cash payment required. Upload your journal and calculations on your PDF. What is the TOTAL interest expense related to this bond over the entire term or life of the bond?

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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Question

Regarding the bond issued by DFC above
Prepare (in good form) the Semi Annual journal entry needed to be recorded by DFC
for the cash payment required.
Upload your journal and calculations on your PDF.
What is the TOTAL interest expense related to this bond over the entire term or life
of the bond?

BOND PRICING #1 for Debt Financing Company
Debt Financing Company (DFC) issues a bond on January 1, 2021 with a face value of $2,000,000.
The bond has a 15 year maturity date and requires SEMI ANNUAL interest payments. The bond's
stated interest rate is 3% and the current market interest rate is 4%.
Hint: remember to set your expectations
PV tables will be needed. Do not round your PVIF, but round answers to whole dollars.
Required:
Prepare the journal entry (in proper form) at issuance of this bond for DFC. Include your journal for
grading on your PDF upload.
Your multiple step calculations must also be shown .
.
To get a preliminary idea of how you did you may enter your calculated amount for cash received at
issuance

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