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docker41 [41]
3 years ago
14

On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on Decembe

r 31, 2025. The bond has a contract rate of interest of 5% and interest is paid semi-annually on June 30 and December 31 of each year. On January 1, 2020, the market rate of interest for bonds was 6%. The issue price of the bond was $382,942. The journal entry to record issuance of the bond would be:
Business
1 answer:
Genrish500 [490]3 years ago
4 0

Answer:

The journal entry to record issuance of the bond would be:

Debit : Cash    $382,942.

Credit : Bonds Payable  $382,942.

Explanation:

At Issuance of Bonds, we recognize the Cash Asset and the Liability Bond Payable at the Issue Price of the Bond instead of Face Value.

The Issue Price is also known as the Present Value or Current Price of the Bond and for this question this was given as $382,942.

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Historically, a factory has been able to produce a very specialized nano-technology component with 35% reliability, i.e., 35% of
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Which type of global marketing strategy works best when consumers share the same desires, needs, and uses for a product across c
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Credence Attributes

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