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Kay [80]
3 years ago
9

Park Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in

4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required:
1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of bonds. Note: Enter debits before credits. Date General 3 Debit Credit January 01 Record entry Clear entry View general journal
Business
1 answer:
nignag [31]3 years ago
5 0

Answer:

Debit cash with $750,000; and credit Bond payable also with $750,000.

Explanation:

The journal entry will appear as follows:

<u>Date          Details                                          Dr ($)               Cr ($)        </u>

Jan. 1         Cash                                            750,000

                  Bond Payable                                                    750,000

<u>                  </u><em><u> To record the issuance of bond.   </u></em><u>                                         </u>

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Assume that an increase in consumer confidence raises consumers' expectations of future income and thus the amount they want to
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Answer:

lower investment and raise the interest rate.

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7 0
3 years ago
Morgan Company's budgeted income statement reflects the following amounts: sales Purchases Expenses January $121,000 $79,000 24,
lana66690 [7]

Answer:

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The computation of the budgeted cash receipts in February month is shown below:

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3 years ago
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