Romania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.   1. Record the bond issue.   2. Record the first interest payment on June 30, 2012.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Romania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.

 

1. Record the bond issue.

 

2. Record the first interest payment on June 30, 2012.

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