Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31. E) A 20-year,10 percent bond issue; the market interest rate is 6 percent F) A 15-year,12 percent bond issue; the market interest rate is 10 percent G) A 15-year, 10 percent bond issue; the market interest rate is 12 percen
Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31. E) A 20-year,10 percent bond issue; the market interest rate is 6 percent F) A 15-year,12 percent bond issue; the market interest rate is 10 percent G) A 15-year, 10 percent bond issue; the market interest rate is 12 percen
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31.
E) A 20-year,10 percent bond issue; the market interest rate is 6 percent
F) A 15-year,12 percent bond issue; the market interest rate is 10 percent
G) A 15-year, 10 percent bond issue; the market interest rate is 12 percen
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