FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Company "Z" on 1/1/2020 issues a 20% bond with face value of $800,000 that will mature
in 5 years. Interests are paid semi-annually on 6/30 and 12/31.
Calculate the price of the bond and record all the accounting journal entries for 2020,
assuming that the market rate is 20%
Calculate the price of the bond and record all the accounting journal entries for 2020,
assuming that the market rate is 10%
Calculate the price of the bond and record all the accounting journal entries for 2020,
assuming that the market rate is 25%
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