On January 1, Renewable Energy issues bonds that have a $44,000 par value, mature in ten years, and pay 15% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103½. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
On January 1, Renewable Energy issues bonds that have a $44,000 par value, mature in ten years, and pay 15% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103½. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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On January 1, Renewable Energy issues bonds that have a $44,000 par value, mature in ten years, and pay 15% interest semiannually on June 30 and December 31.
1. Prepare the
2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
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