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Prepare journal entry to record the issuance of the bonds

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Reference no: EM131928268

Question - Nordic Company issued bonds with the following provisions:

Maturity value: $60,000,000. Interest: 7.9 percent per annum payable semi-annually each June 30 and December 31.

Terms: Bonds dated January 1, 2017, due five years from that date.

The company's fiscal year ends on December 31. The hands were sold on January 1, 2017, at a yield of 8 percent.

Required:

1. Compute the issue (sale) price of the bonds.

2. Prepare the journal entry to record the issuance of the bonds.

Reference no: EM131928268

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