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 *...

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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
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STATUS

Approved

DATE ANSWERED

Oct 17, 2019

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