Solution-Prepare the journal entry to record the bond issue

Prepare the journal entry to record the bond issue

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Reference no: EM132591085

Question - On January 1, 2020 ABC Company issued a $1,500,000 bond with a 5-year term and interest payable at a stated rate of 4%. Interest is payable quarterly at the end of each period. (March 31, June 30, September 30 and December 31)

Required -

1. What is the current value of the bond if the market rate of interest is 6%?

2. Prepare the bond amortization schedule.

3. Prepare the journal entry to record the bond issue on January 1, 2020 along with the interest payment made on December 31, 2020.

Using the same information except that the interest is payable semi-annually on June 30 and December and

1. What is the current value of the bond if the market rate of interest is 2%?

2. Prepare the bond amortization schedule.

3. Prepare the journal entry to record the bond issue on January 1, 2020 along with the interest payment made on December 31, 2020.

Reference no: EM132591085

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Prepare the journal entry to record the bond issue

Reference no: EM132591085

Reference no: EM132591085

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