On January 1, 2024, White Water issues $540,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $580,169. 2. If the market interest rate increases to 8% on December 31, 2026, it will cost $511,480 to retire the bonds. Record the retirement of the bonds on December 31, 2026. (If no entry is required for a particular transaction/event, select "No Journal, Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
On January 1, 2024, White Water issues $540,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $580,169. 2. If the market interest rate increases to 8% on December 31, 2026, it will cost $511,480 to retire the bonds. Record the retirement of the bonds on December 31, 2026. (If no entry is required for a particular transaction/event, select "No Journal, Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 3P
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![Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, White Water Issues $540,000 of 7% bonds, due in 10 years, with interest payable
semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the
bonds issued at $580,169.
2. If the market interest rate increases to 8% on December 31, 2026, it will cost $511,480 to retire the bonds. Record the
retirement of the bonds on December 31, 2026. (If no entry is required for a particular transaction/event, select "No Journal
Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
View transaction list
Journal entry worksheet
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F965f56f7-11fe-44f1-804c-8384f3bd0e6e%2Ff3e9c587-0123-426e-ab8c-edb9c04f7241%2Fd5rbt5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, White Water Issues $540,000 of 7% bonds, due in 10 years, with interest payable
semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the
bonds issued at $580,169.
2. If the market interest rate increases to 8% on December 31, 2026, it will cost $511,480 to retire the bonds. Record the
retirement of the bonds on December 31, 2026. (If no entry is required for a particular transaction/event, select "No Journal
Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
View transaction list
Journal entry worksheet
1
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