### Prepare the entry for Jan. 1, 2011, to record the following bond issue by SABIC. Par value = \$500,000 Issue price = 92.6405% of par value \$500,000 *...

#### Description

Prepare the entry for Jan. 1, 2011, to record the following bond issue by SABIC.Par value = \$500,000  Issue price = 92.6405% of par value  \$500,000 * 92.6405%=463203Par value  Issue Value   Discount Value500000  -  463203  =   36797 Stated interest rate = 10% Market interest rate = 12% (Bond will sell at a discount)Interest dates = 6/30 and 12/31Bond date = Jan. 1, 2011   Maturity date = Dec. 31, 2015 (5 years)1-Pass journal entry 2-Issued of Bond, 3-Pass entry for every six months to record the cash interest payment and the amortization of the premium.4-Journal entry on retirement of the bond                     Answer...........

#### Question

Prepare the entry for Jan. 1, 2011, to record the following bond issue by SABIC. Par value = \$500,000 Issue price = 92.6405% of par value \$500,000 *...

• Written in: 17-Oct-2019
• Paper ID: 322828
Price: \$ 15

STATUS

Approved