Madrid Company plans to issue 12% bonds with a par value of $4,500,000. The company sells $4,050,000 of the bonds at par on January 1. The remaining $450,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Madrid Company plans to issue 12% bonds with a par value of $4,500,000. The company sells $4,050,000 of the bonds at par on January 1. The remaining $450,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 10EB: Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and...
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Madrid Company plans to issue 12% bonds with a par value of $4,500,000. The company sells $4,050,000 of the bonds at par on January 1. The remaining $450,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31.
1. Record the entry for the first interest payment on June 30.
2. Record the entry for the July 1 cash sale of bonds.
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